The board of Vindon has confirmed that talks with the board of Source BioScience are at an advanced stage. The discussions were about a possible all cash offer for the purchase of shares of stock not owned by Source BioScience.

Vindon priced the shares at 13.7 pence. This would put the entire transaction at a value of GBP12.2 million worth of issued and to-be-issued share capital. This would be a 44% premium of the closing price last July 15, 2013.

An offer document will contain further information regarding the possible offer. Source BioScience Tuesday has obtained irrevocable undertakings from the director shareholders of Vindon.

The offer of Source BioScience will be subject to certain conditions including arrangement of suitable funding and unanimous recommendation from the directors of Vindon. In addition, Source BioScience will also need its shareholders' approval to issue new shares. The new shares to be issued will be used to fund the acquisition.