Open Orphan plc (AIM:ORPH) have reached an agreement to acquire hVIVO plc (AIM:HVO) from Trevor Phillips, Mark Warne, James Winschel and others for £11.9 million on December 9, 2019. Under the terms, Open Orphan will issue 2.47 new shares for every 1 hVIVO shares. Open Orphan proposed the implementation of an option plan to align management incentives to shareholder returns. Trevor Phillips is proposed to receive 18.4 million options and Tim Sharpington is proposed to receive 9.2 million options. The options will vest over a three year period, subject to meeting various performance conditions. After acquisition hVIVO shareholders will hold 44.67% of enlarged group. Following completion of the offer, it is intended that the hVIVO and Open Orphan company names will continue to be employed with respect to the services offered by each group respectively under the ultimate holding company Open Orphan.

Trevor Phillips will become Chief Executive Officer of the Enlarged Group and Cathal Friel will become Executive Chairman of the Enlarged Group. They will be joined on the Enlarged Group's Board by Brendan Buckley, Mark Warne and Michael Meade as non-executive Directors. Open Orphan has no plans that that will result in changes to the conditions of employment, the balance of the skills and functions of the hVIVO employees and management and the location of the hVIVO places of business (including on the location of hVIVO's headquarters and headquarter functions).

Transaction is subject to CMA clearance, approval of shareholders of hVIVO and Open Orphan, minimum tender, acceptance of share pursuant to the offer and general regulatory matters. As of December 9, 2019, Board of Directors of hVIVO and Open Orphan unanimously approved the transaction and recommended respective shareholders vote in favor and Independent hVIVO Directors recommend unanimously that hVIVO Shareholders accept the Offer. Offer will initially be open till December 30, 2019. As of December 31, 2019, the acceptance condition has been satisfied and the offer has become unconditional as to acceptances. The transaction has received valid acceptances for a total of 72.5 million shares, representing 87% of hVIVO's entire issued share capital. The cancellation of listing and trading will take effect on January 20, 2020. As on January 6, 2020, the transaction was approved by shareholders of Open Orphan.

John Llewellyn-Lloyd, Benjamin Cryer and Adam Cowl of Arden Partners plc (AIM:ARDN) acted as nomad and joint brokers for Open Orphan. Freddie Barnfield and Huw Jeremy of Numis Securities Limited acted as nomad advisors and Sam Evans of MCF Corporate Finance Limited acted as financial advisor for hVIVO and fairness opinion provider for independent directors of hVIVO. Rebecca Gordon, Matthew Edwards, Michael Carter and Dan Sharman of Osborne Clarke N.V. acted as legal advisors to hVIVO plc. The transaction also involved due diligence assistance from Osborne Clarke's offices in France, Germany, the Netherlands and Singapore, and Matheson in Ireland.

Open Orphan plc (AIM:ORPH) completed the acquisition of hVIVO plc (AIM:HVO) from Trevor Phillips, Mark Warne, James Winschel and others on January 14, 2020. Open Orphan has accepted 93% stake of hVIVO and expects to mount a compulsory acquisition for remaining stake in hVIVO. As of January 17, 2020, Open Orphan announces that it has decided, in accordance with the offer document, to waive the outstanding conditions under the offer. Accordingly, there are no further conditions to be satisfied and the offer is now unconditional in all respects. Open Orphan intends to exercise its rights pursuant to compulsorily acquire the remaining hVIVO shares. The compulsory will be settled on the same terms as the offer and hVIVO shareholders will be entitled to receive 2.47 Open Orphan Shares for every 1 hVIVO Share. As of January 31, 2020, Open Orphan completed the placing and subscription of shares and proceeds will be used to fund the growth and synergies programme of the business following the completion of the hVIVO acquisition. As of March 9, 2020, Open Orphan plc (AIM:ORPH) confirms completion of the compulsory acquisition of all remaining hVIVO shares. Admission is expected to occur on March 12, 2020. The allotment and issue of these consideration shares to the non-assenting shareholders pursuant to the compulsory acquisition will be the final tranche of shares to be issued in respect of the merger with hVIVO.