Motif Bio in talks with reverse takeover candidates

Motif Bio said it was in talks with potential reverse takeover candidates in the healthcare sector looking to advance treatments for Covid-19.

The shell company said it had appointed broker Peel Hunt to advise on the potential transaction. Its shares rose 26% to 1p at 10:25 BST.

The AIM-listed company said the "candidates under current consideration are exploring ways in which their therapeutic product candidates may help patients with Covid-19".

Motif Bio was reclassified as an AIM cash shell in January and is required to make an acquisition by 28 July. The company said after raising £650,000 it had working capital to last until February 2021.

Jonathan Gold, Motif Bio's president and chief business officer, said: "Following the recent fundraise we are pleased to be in a position where we have several options to evaluate. We are currently working with our advisers to identify the most appropriate reverse takeover candidate for the company and look forward to providing our shareholders with further updates as appropriate."