4. Non-current assets - Intangible assets
Intangible assets of $19,916,000 relate to the acquisition of Ester
Neurosciences Limited on December 5, 2007 representing the upfront
acquisition consideration already satisfied in cash and shares in
December 2007 plus $4,756,000 of a provision relating to a future
contingent milestone, likely payable during 2008. This milestone is
payable in cash or shares, at Amarin's option (see note 6 below).
5. Non-current liabilities - Convertible debt
In December 2007, the company issued $2.75 million 8% convertible notes.
These notes are being repaid out of the proceeds of the first tranche of
the funding announced on May 14, 2008.The difference between the carrying
amount of the liability component at the date of issue and the amount
reported in the balance sheet at December 31, 2007 represents the change
in amortized cost under the effective interest rate method.
6. Current liabilities - Provisions
Included in provisions is $4,756,000 which relates to the fair value of
the contingent consideration payable to former Ester shareholders in cash
or shares, at Amarin's option, on the achievement of a certain milestone
as a result of the acquisition of Ester Neurosciences Limited on December
5, 2007. The achievement of this milestone is considered to be probable
and is recognized as a liability.
7. Basis of preparation
As at December 31, 2007, the Company had cash balances of $18,303,000.
As previously announced, on May 14, 2008, Amarin announced a private
placement of ordinary shares for up to $60 million to be funded in two
equal tranches. Amarin expects to announce the closing of the first
tranche shortly. The investors in this funding have an option to fund up
to $30 million in the second tranche upon completion of certain business
|SOURCE Amarin Corporation Plc|
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