Arrotex Pharmaceuticals (Arrotex), Australia’s largest generic pharmaceutical and private label over the counter company, has come into agreement with Corum Group Limited (ASX:COO) (Corum), becoming a strategic shareholder in Corum.
Arrotex has come into a placement agreement with Corum, making an investment of $3.3 million in the company via the placement of 60 million new ordinary shares.
This is reportedly the first listed company investment made by Arrotex and represents approximately 10% of the post issue share capital.
Proceeds from the placement will be utilised to accelerate key product development and business expansion to drive profitable revenue growth.
“We believe Corum is ideally positioned as a technology platform provider to Australian pharmacy and related healthcare sectors and look forward to assisting in creating value,” says Arrotex Chairman, Dennis Bastas.
As part of the transaction, Mr Bastas will be invited and has undertaken to join the Corum Board. This will take place on completion of the share placement and after the upcoming 2020 Corum Annual General Meeting.
“We are excited to welcome Arrotex as a strategic shareholder and an industry leader in Dennis Bastas to the Board,” says Corum Group Chairman, Nick England.
“Corum now has the people, relationships and capital to execute its growth strategy.”
