AIM float gives Optibiotix £6m market value

York-based OptiBiotix has effectively been bought by investor group Ducat Ventures for £2m in shares.

Ducat raised £3.3m from the float to fund the deal which will help to commercialise and develop OptiBiotix’s new product pipeline.

The company has changed its name to OptiBiotix Health plc and will keep its head office in Heslington, York, following the float.

Adam Reynolds, former executive chairman of Ducat and now a non-executive director at OptiBiotix, said: “With at least 2.8 million adults dying as a result of being overweight or obese, it is clear that weight-related health problems are one of the world’s biggest public issues affecting both the developed and the developing world.

“We see a massive opportunity to address this market with our pipeline of products being developed to suppress appetites and reduce lipid and cholesterol levels.”

OptiBiotix is creating a range of products designed to prevent or manage many of the chronic and debilitating illnesses associated with lifestyle and ageing.

The company said there is big demand for products targeted at managing lifestyle diseases such as diabetes and obesity and delaying the normal ageing process, but the current products on the market lack the proper underlying scientific and clinical evidence.

Chief executive Stephen O’Hara​ ​said: “The science behind the human microbiome, particularly how changes to the way microbes work in our bodies can impact our health, presents a huge opportunity for us to address many widely experienced diseases and a chance to significantly improve lives world- wide.”​

Products under development include a scientifically formulated and clinically validated Weight Management Product to support weight loss in overweight and obese patients as part of a diet and exercise weight-loss programme.

It is also working on new microbial strains for the prevention and management of heart disease, diabetes, and weight management and a novel food ingredient which selectively enhances naturally occurring ‘good bacteria’, for example Lactobacilli, within the Human Microbiome to boost health benefits.

“The development of novel non-digestible sugars is expected to have a huge impact on the healthy eating market place where major commercial partners are looking to find healthier sugar substitutes,” said Mr Reynolds.

OptiBiotix was formed in 2012 to develop compounds which modify the human microbiome, the collective genome of the microbes in the body, to prevent and manage human disease.

Its aim is to discover and develop microbial strains, compounds and formulations which modulate the human microbiome and can be used as food ingredients, supplements or active compounds for the prevention and management of human metabolic diseases.

​“​We are at the frontline of research into using microbiome science to tackle weight-related health problems and this move to AIM provides us with the support we need to advance our pipeline of products that support and sustain weight loss and reduce lipid and cholesterol levels​,” said Mr O’Hara.​

The £2m price tag was​ satisfied by the issue of 25,000,000 new ordinary shares at a price of 8p per share.

Peterhouse Corporate Finance, the company’s broker, raised £3.3m before expenses for the company through the placing of 41,250,000 new ordinary shares at 8p​.