Open Orphan (LON: ORPH) shares are trading higher on Monday after it announced a proposal to make a distribution in specie of the entire issued share capital of its wholly-owned subsidiary, Orph Pharma IP, to Poolbeg Pharma, in return for the issue of new shares by Poolbeg to Open Orphan shareholders.
Open Orphan shareholders have already granted approval with shares marked “ex-rights” on 16 June 2021. Shareholders will receive one Poolbeg Share for every 2.98 ordinary shares held in the company.
However, there will be a lock-up period for relevant shareholders who receive Poolbeg shares. They will not be able to sell, transfer or deal in Poolbeg Shares for 9 calendar months.
Ready to put what you’ve learned into practice?
Try IG’s platform with £10,000 in virtual funds and practise trading
without putting your own money at risk.
Try IG with a demo account →
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading spread bets and CFDs with this provider.
Learn the markets with IG Academy
Build your knowledge with IG Academy educational content, then use a
demo account to practise what you’ve learned on the IG platform.
Explore IG →
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading spread bets and CFDs with this provider.
See how trading works before risking real money
IG’s demo gives you access to thousands of markets and £10,000 in
virtual funds, so you can explore the platform and test your ideas first.
Open an IG demo →
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading spread bets and CFDs with this provider.
Turn trading theory into practical experience
Learn with IG Academy, explore charts and market tools, and practise
strategies in a simulated trading environment before going live.
Start practising with IG →
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading spread bets and CFDs with this provider.
Ready to take your learning further?
IG combines market education, analysis and an established trading platform,
giving you the tools to keep learning as you develop your trading skills.
Discover IG →
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading spread bets and CFDs with this provider.
Croft Nominees Limited will hold the legal title to the Poolbeg shares until the date, which is 9 months from admission. Once the lock-up expires, Croft will then ass the share certificate to Poolbeg’s registrar and will execute the stock transfer forms to the relevant shareholders.
Open Orphan and Poolbeg will also into a demerger agreement as part of the deal.
Open Orphan’s share price is currently trading at 38.05p, up 6.28% following the news. At the open, it jumped as high as 39.5p.
Should you invest in Open Orphan shares?
Open Orphan shares are traded on the London stock exchange’s AIM market (the alternative investment market), which is the submarket specifically for smaller companies. AIM stocks are attractive to investors as they have tax advantages and smaller companies have the potential to benefit from rapid growth. But are Open Orphan shares the best buy? Our stock market analysts regularly review the market and share their picks for high growth companies
