Business Description

Port Erin Biopharma Investments Limited (LSE: PEBI), incorporated on 3 May 2011 under the law of the Isle of Man for the purposes of investing in the Biotechnology and Biopharmaceutical sector.

The Company's strategy is to create value for Shareholders through investing in companies that have the potential to generate substantial revenues through the development of biopharmaceutical drugs.

The Company's Non-Executive Chairman is Jim Mellon, who has had a successful career in the fund management industry.

The Company intends to co-invest wherever possible alongside Mr Mellon in investments that he has identified.

Mr Mellon has actively invested in the biopharmaceutical sector since 2009 and has now partly based himself in San Francisco where many of the current technological developments are taking place. He has acquired a personal portfolio of investments in the sector. He is becoming well known in the US industry as an investor and is approached frequently about potential opportunities.

Mr Mellon evaluates opportunities in the sector in terms of the size of the potential market a product or drug seeks to address and the stage of clinical trials passed and hence arrives at a risk weighted assessment of future income streams from whichever product or drug is under development. Mr Mellon does, on occasion, seek industry assistance on verifying the prospects for individual drugs when reaching his decision whether to invest personally. Mr Mellon will, where possible and only to the extent he deems necessary, conduct his own due diligence on potential investments. As part of his due diligence process he will generally but not always meet the management team of any given company before investing.

If Mr Mellon decides to invest personally in any given company he will, in his discretion and if the company in which he is investing permits, inform Port Erin of the general details of his investment.


Investing Policy

Following the General Meeting held on 11 November 2013, the Company adopted a new investing policy.

The new investing policy states that:-

“The Company will invest in the Biopharma Sector and will establish a portfolio of investments in biotechnology and biopharmaceutical companies.

The Company will invest in equity and equity related products in both quoted companies, which offer the benefits of liquidity, and in unquoted companies which offer the attraction of additional capital gains upon completion of a successful IPO. The Company may also invest in shares of collective investment schemes with exposure to the Biopharma Sector and in long-term equity anticipation securities the underlying securities of which will be based on Biopharma Sector securities and/or indices relating to the Biopharma Sector. The Fund may invest in Biopharma Sector debt. Investments in Biopharma Sector debt shall not exceed 15 per cent. of the Net Asset Value of the Company.

The Company will be ungeared. The Company will be a passive investor.

The Company aims to deliver capital growth by realising capital gains when it considers that the valuation of individual investments looks to be excessive or, as is often the case in this sector, as a result of trade sales.

Assets and investments will be held by the Company directly or through the individual share custodians of the brokers used by the Company to acquire the shares.

Any material variation to the Investing Policy will require the approval of Shareholders at a general meeting of the Company in accordance with the AIM Rules for Companies.”