Avacta Group PLC Sale of Optim Trade and Assets (6944E)
12 February 2015 - 6:01PM
UK Regulatory
TIDMAVCT
RNS Number : 6944E
Avacta Group PLC
12 February 2015
12 February 2015
Avacta Group plc
("Avacta" or "the Group")
Sale of Optim Trade and Assets
Strategic Focusing of Group's Activities
Avacta Group plc (AIM: AVCT), the global provider of proprietary
diagnostic tools, consumables and reagents for human and animal
healthcare announces, it has completed a sale of the trade and
selected assets of its Optim product ("Optim") to Unchained Labs
Inc.
The Group will receive up to $5 million in cash, with $3.5
million received as initial consideration and up to $1.5 million to
be received dependent on the future sales performance of the
product over the period to 31 December 2019.
Optim formed substantially all of the Avacta Analytical
operating segment of the Group's operations and, for the year ended
31 July 2014, this operating segment reported revenues of GBP1.6
million and an operating profit of GBP0.1 million. The Group's
carrying value for Optim is approximately GBP1.7 million, which
includes a related deferred tax liability of approximately GBP0.4
million.
In addition, the Group carried a non-cash, non-current
intangible asset of goodwill related to the Avacta Analytical
operating segment of GBP4.9 million which will be charged to the
income statement.
Following the sale of Optim, the Group will apply the proceeds
of the sale primarily towards the continuing development and
commercialisation of its Affimer technology.
Dr Alastair Smith, Group Chief Executive commented:
"For some time now, the principle focus of the Group's resources
has been on the Affimer opportunity and the sale of the Optim
product is strategically important as it allows the Group to focus
even more intensively on the development and commercialisation of
Affimers.
"Optim is now established as a product in its market and the
opportunity is substantial for an acquirer with significant sales
and marketing resources to put behind it.
"The Group has a huge opportunity with the Affimer technology to
grow significant value for shareholders. It is important for us to
focus on that and I am therefore pleased that we have been able to
take this strategic step."
Enquiries:
Avacta Group plc Tel: +44 (0)
Alastair Smith, Chief Executive 844 414 0452
Officer www.avacta.com
Tim Sykes, Chief Financial Officer
Numis Securities Limited Tel: +44 (0)
Michael Meade / Freddie Barnfield 207 260 1000
- Nominated Adviser www.numiscorp.com
James Black - Corporate Broking
Media Enquiries Tel: +44 (0)
Walbrook PR Ltd 207 933 8780
Mike Wort / Anna Dunphy avacta@walbrookpr.com
About Avacta Group plc - www.avacta.com
Avacta Group plc is a global provider of innovative
technologies, consumables and reagents for the life science
markets, from drug discovery to diagnostics. Avacta operates
through two divisions:
Avacta Animal Veterinary diagnostics reference
Health laboratory and diagnostic kit
www.avactaanimalhealth.com provider.
---------------------------- ---------------------------------------
Avacta Life Sciences Novel non-antibody affinity
www.avactalifesciences.com reagents called Affimers, with
a wide range of Life Science
applications in diagnostics,
drug and biomarker discover
and biotech research and development.
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This information is provided by RNS
The company news service from the London Stock Exchange
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