SkinBioTherapeutics PLC - Newcastle, England-based life science company focused on skin health - Agrees to acquire Dermatonics Ltd for GBP1.7 million initially, plus up to a GBP1.3 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 GBP230,000 on GBP1.8 million in revenue. SkinBioTherapeutics says the acquisition will be financed with a GBP1.6 million drawdown from a new GBP5.0 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 GBP2 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 GBP25.6 million market capitalisation

12-month change: down 31%

By Tom Waite, Alliance News editor

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