The dividend relates to Benitec's equity stake in Tacere and the dividend amount represents US$7.06 per outstanding share of Tacere Common Stock.
As previously announced, Benitec has licensed its gene silencing technology (DNA-directed RNAi) for treating Hepatitis C to Tacere and as consideration, Tacere agreed to upfront and milestone payments and future royalties. The equity stake owned by Benitec in Tacere is part of the overall consideration for the licence agreement between the parties.
Tacere are currently working with Pfizer (NYSE:PFE) to further develop and commercialise Tacere's Hepatitis C Virus compounds.
Dr Peter French, Benitec CEO, said that he was very pleased with the dividend payment, as "...it indicates the potential for significant income as Benitec's technology moves through the commercialization process. Clearly the potential is for this and other projects to yield significant value for shareholders in the future."
Benitec Biopharma Limited