IN BRIEF: SkinBioTherapeutics buys Dermatonics; in talks for 2nd deal

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SkinBioTherapeutics PLC - Newcastle, England-based life science company focused on skin health - Agrees to acquire Dermatonics Ltd for £1.7 million initially, plus up to a £1.3 million earn-out over three years. St Ives, Cambridgeshire-based Dermatonics makes topical and dermatological products for skincare and woundcare, using natural ingredients wherever possible. It has annual earnings of £230,000 on £1.8 million in revenue. SkinBioTherapeutics says the acquisition will be financed with a £1.6 million drawdown from a new £5.0 million convertible bond issue.

SkinBioTherapeutics says it also is in talks for a second acquisition in a similar sector, for which it would pay less than £2 million. The acquisition is expected to be completed in the first quarter, and, like Dermatonics, the target is cashflow positive.

Current stock price: 13.45 pence, down 8.8% in London on Thursday, for £25.6 million market capitalisation

12-month change: down 31%

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