Case study of working capital exercise

1. Allergy Therapeutics plc
Case study: Allergy Therapeutics plc
Placing, Subscription and Issue of Convertible
Background
Loan Notes and Offer
• This AIM listed Group specialises in allergy vaccines with its manufacturing base in Worthing, UK and
subsidiaries and branches selling its products throughout Europe Pharmaceuticals
• For FY11 the German market accounted for approximately two thirds of the Group's revenue and the Group is £13.4 million
currently developing its business in South America, partly leveraging the infrastructure of its major shareholder, March 2012
and is also rolling out new licensed products such as Anapen (for anaphylactic shock) Grant Thornton acted as reporting accountants
The Transaction
“Due to the timing of our 6+6 forecast, on
• The Group raised £13.4m via a Placing, Subscription, issue of Convertible Loan Notes and an Offer in order to which a public working capital statement was
repay debt facilities and accelerate growth. The Circular included a voluntary working capital statement made to be made by the Board, and our desire to
by the Board announce the fund-raising to coincide with
our interim results, there was a very tight
Grant Thornton Transaction Advisory Service's role window for Grant Thornton to carry out their
due diligence and issue their working capital
• We issued a comprehensive working capital report on the Group's forecasts underlying the working capital report. The Grant Thornton team, including
statement made by the directors in a tight timescale their German firm, reacted swiftly to the
challenge to produce a clear, comprehensive
• We met with the local business managers of the Group's major international operations including Germany, report comfortably within the
Italy and Spain timescale. Grant Thornton continue to be a
valued partner as we grow our business."
• We performed a review of the Group's existing and forecast international tax position in order to sign off on the
tax assumptions made by the Group in their forecasts Ian Postlethwaite
Finance Director
Allergy Therapeutics plc