Melcion, Chassagne & Company

Description

Many people have been asking how deals get done these days. With banks not coming to terms with the need to start doing their part to help the economy, i.e. lending their customers the money they need to grow, Apredica's double transaction last week gives an indication of the creative ways entrepreneurs have been using to build their businesses and protect their competitive edge. When Apredica (Melcion, Chassagne & Company client) was approached to acquire the assets of Cellumen, Incorporated a Pittsburgh-based company funded by Safeguard Scientifics and Novitas Capital, it needed to borrow the money it required to conclude the transaction. With banks looking the other way and traditional investors shying away from non-traditional deals, Apredica had to pull all the stops to conclude the acquisition in a narrow window. Cyprotex, a UK-based AIM-listed Clinical Research Organization had been looking for ways to enter the US market. This triangular operation allows Apredica to acquire the toxicology technology developed by Cellumen and immediately put it to use on both sides of the Atlantic, directly through its own marketing prowess and through Cyprotex's European presence. For Apredica's founders, this is not an exit, rather a stepping stone to conquer the world. The press that has picked up on the story on both sides of the Atlantic failed to recognize that the share issuance part of the deal gives Apredica co-founders Katya Tsaioun and Doug Bates a significant ownership position in Cyprotex's traded stock, making them, (combined), Cyprotex's largest minority shareholder. Their skills are also complementary to Cyprotex's management, creating a powerful quintet in the industry. Cyprotex gets its US beach-head, a solid team including the Chief Scientific Officer and Chief Marketing Officer they lacked and benefit from the Toxicology technology Apredica just acquired as they were readying their own Toxicology program. The market seems to read similar things into the story as Cyprotex's share price lifted by 18% in the 2 days following the announcement.

Products & services

Similar companies nearby