07 May 2013 | News | By BioSpectrum Bureau
Singapore: Japanese company I'rom Holdings will acquire an 18.8 percent stake in IDT Australia. I'rom is listed on the Tokyo Stock Exchange and is one of the leading providers of site management services to the Japanese pharmaceutical industry.
The investment will create a platform for expansion of clinical trial support services in Australia and the region. IDT and I'rom will establish a strategic management group to identify and evaluate opportunities.
The alliance between I'rom and IDT will help accelerate the growth and development of IDT's CMAX clinical trials business, based at the Royal Adelaide Hospital in South Africa; and help set up a network of medical institutions, in much the same way that I'rom spearheaded a similar effort in Japan, allowing I'rom and IDT to more adequately serve the needs of the global clinical research/trials industry.
IDT will issue 10 million fully paid ordinary shares to I'rom at $0.20 per share raising $2 million in gross proceeds. Net proceeds to the company after fees and other costs will be $1.67 million. These funds will be used to fund and accelerate the development of CMAX in conjunction with I'rom as referred to above, to initiate the process of setting up a network of medical institutions, and for working capital requirements.
Part of the costs of the capital raising include a success fee payable under a long standing arm's length arrangement with investment advisory firm Kidder Williams, who brokered the placement to I'rom. It is proposed that completion of the placement will occur on May 10, 2013.