TIDMWDC
RNS Number : 3279V
WideCells Group PLC
02 November 2017
2 November 2017
WideCells Group PLC ('WideCells Group' or 'the Group')
Revenue generation commences with milestone binding agreement
with White Apex:
stem cell services available for purchase in the Middle East,
North Africa and Asia-Pacific territories
WideCells Group PLC, the healthcare services company focused on
providing stem cell services and ground-breaking insurance for stem
cell treatment, is pleased to announce that further to the
announcement released on 11 October 2017, it has signed binding
five-year agreements with multi-sector advisory business White Apex
General Trading ('White Apex'), effective 31 October 2017.
Accordingly, the Group's end-to-end stem cell services are now
available for purchase and being promoted in the Middle East and
North Africa (including Turkey) ('MENA') and Asia-Pacific
(excluding China) territories (the 'Territories').
Overview
-- Binding agreement with White Apex to transform revenue and value potential of WideCells Group
-- GBP255,000 payable to WideCells Group immediately - for
initial set up of WideCells stem cell collection and dispatch
services and sponsorship of Wideacademy subscriptions for 2,000
doctors per year for three years
-- Multi-million pound recurring revenues expected from all three divisions:
o CellPlan - sale of innovative stem cell insurance product
o WideCells - sale of stem cell storage and INDUS synthetic bone
products
o Wideacademy - sale of subscriptions to the educational
platform (2,000 doctors already subscribed) and educational /
training accreditation
-- Further GBP1,500,000 potentially payable for the adaptation
of Wideacademy's innovative educational platform for use in MENA
and Asia-Pacific regions:
o GBP250,000 potentially to be paid by the end of the year, to
be followed by two additional payments of GBP250,000 due for the
next two years thereafter, for MENA adaptation
o GBP250,000 potentially to be paid the end of Q1 2018, to be
followed by two additional payments of up to GBP250,000 due for the
next two years thereafter, for Asia-Pacific adaptation
-- Established a regional office in Dubai to facilitate
commercial roll-out - led by Dr. Ahmed Al-Alawi, a pre-eminent stem
cell scientist with notable corporate experience and regional
connections
WideCells Group CEO, João Andrade, said, "We are delighted to
have finalised this landmark agreement with White Apex and
accordingly now be selling our innovative stem cell services and
regenerative health products in the MENA and Asia-Pacific regions.
This is a multi-million-pound deal: with GBP255,000 payable to us
immediately and significant recurring revenues expected to commence
thereafter from all three of our divisions, this sales agreement is
set to transform our company. Stem cells are revolutionising the
medical world, and as we build our global reach we are also able to
promote and support the development of this rapidly growing area of
medicine so that more and more people can benefit from and have
access to this potentially life-saving treatment.
"White Apex make the perfect partner for us. Thanks to their
unrivalled regional experience and connections within the MENA and
Asia-Pacific territories, we are able to rapidly build our global
presence and commercial reach. Furthermore, having strengthened the
terms of the binding agreement compared to those agreed in the
initial heads of terms, their belief in the value of our
proposition is clear: the agreement has been extended from three to
five years and also now includes Turkey. We look forward to working
closely with them to build revenues across all three of our
divisions within this highly prospective region."
Dr Ahmed Al-Alawi, CEO of White Apex and newly appointed
WideCells Group Managing Director of MENA and Asia-Pacific said,
"White Apex is pleased to be associated with Widecells Group. Our
joint efforts will make stem cell treatment accessible and bring
trust and authenticity to this growing area of medicine. We believe
the delivery of this end-to-end stem cells solution will transform
healthcare in the MENA and Asia-Pacific regions and I am delighted
to support the Company in the creation of a regional office to
support roll-out."
Further Information
White Apex will sell and promote the following WideCells Group
services:
-- WideCells, stem cell collection and dispatch - covers the
processing, quality control, analysis (infectious disease
screening) and long-term storage (up to 25 years) of cord blood
and/or cord tissue
o White Apex is an appointed exclusive agent and authorised to
sell cord blood and tissue storage services directly to customers
(expectant parents) or to appoint sub-agents within the
Territories, generating recurring revenues for WideCells Group
o White Apex to procure clients in the Territories and send
samples to WideCells Group's Institute of Stem Cell Technology
laboratory in Manchester
o An initial start-up fee of GBP15,000 payable to WideCells
Group immediately followed by on-going monthly support fees for the
UAE market
o The same model with payment of an initial start-up fee
followed by on-going monthly support fees will apply to each new
country within the designated Territories
-- INDUS, a novel synthetic bone graft which promotes new bone
formation. Two products will be available for purchase - INDUS TCP
and INDUS BCP
o White Apex is an appointed exclusive distributor and
authorised to sell INDUS directly to customers (such as clinics or
dentists) or to appoint sub-dealers within the Territories
o Minimum sales targets will be agreed and established in the
first 90 days when entering each country within the Territories
-- CellPlan, the world's first stem cell healthcare insurance
plan with financial cover for medical treatment, travel and
accommodation expenses and concierge service to manage the
treatment process
o White Apex to exclusively facilitate introductions between
CellPlan Limited (a subsidiary of the Group) and insurance
companies in the Territories with a view to securing commercial
sales agreements
o Potential for White Apex to introduce CellPlan Limited to stem
cell storage facilities and provide ongoing support
o CellPlan Limited will pay White Apex introductory commission
fees on successful introductions which lead to new policies being
sold within the Territories
o The agreement becomes effective upon, amongst other things,
the approval of the WideCells Group's commercial partners which
established the CellPlan policy.
-- Wideacademy, providing stem cell education and training
services via a custom-built Statistical Analysis System ('SaaS')
platform
o Paid for subscriptions for doctors and medical professionals
to access premium content and digital tools - charged at GBP120 per
year per subscriber/ doctor
-- White Apex to initially sponsor subscriptions for 2,000
doctors per year for two countries in the agreed Territories for a
period of three years, generating annual revenues of GBP240,000,
with the first payment due immediately
-- All future sponsorships / subscriptions secured in the
Territories will be shared between Wideacademy and White Apex
-- The same model applies if White Apex sponsors doctors in
other countries within the designated Territories
o Wideacademy platform localised to the MENA region
-- White Apex has the option to pay GBP750,000 for Wideacademy
to localise its bespoke SaaS platform for use in the MENA
region
-- If the option is exercised by White Apex, it is to be paid
annually in three instalments of GBP250,000, with first payment due
before 31 December 2017
o Wideacademy platform localised to the Asia-pacific region
-- White Apex has the option to pay GBP750,000 for Wideacademy
to localise its bespoke SaaS platform for use in the Asia-Pacific
region
-- If the option is exercised by White Apex, it is to be paid
annually in three instalments of GBP250,000, with first payment due
before 31 March 2018
o Accreditation
-- Wideacademy will offer courseware modules to medical and
enterprise professionals to enhance their CPD (continuous
professional development) - it is anticipated that these modules
will be free-to-air, but the optional accreditation which comes
from completion will be charged at c. GBP200 per module
-- Wideacademy will share with White Apex 30% of revenues
derived from accreditation of online courses from users in the
Territories
About White Apex
White Apex is a multi-sector advisory business with offices in
the UAE, Oman, Bahrain and Kuwait. The company supports clients
across four primary divisions - Corporate Advisory, Investment,
Energy and Healthcare - and is experienced in the marketing and
sale of commercial products.
Additionally, White Apex will operate a regional office in Dubai
for WideCells Group. This will be led by Dr. Ahmed Al-Alawi, who
has been appointed WideCells Group Managing Director of MENA and
Asia-Pacific. Dr. Al-Alawi is an experienced stem cell scientist
who previously led a team at Genzyme, which was the world's
third-largest biotechnology company in 2010, prior to its
acquisition by Sanofi in 2011. He also founded The Middle East
Thrombosis Institute (www.tri-london.ac.uk). Alongside his medical
achievements, Dr. Al-Alawi has considerable cross functional
experience in international Fortune 500 & FTSE companies,
having previously held roles at Philips Electronics and Shell
International. He also has notable regional connections, having
previously worked within the Omani Government and most recently
co-founded RAY International UAE in 2015, which is part of the
leading RAY International Group (http://rayinternational.ae).
Other team members include Ahmad Jemain, who has been appointed
WideCells Group Chief Operating Officer of MENA and Asia-Pacific.
Mr Jemain has considerable experience in corporate and enterprise
in the South East Asian region, particularly within the insurance
industry. Zakaria Aziz also joins the team as WideCells Group
Business Development/ Marketing in South East Asia. Mr Aziz is a
successful entrepreneur who co-founded RAY International Group. He
has over 28 years of business experience in the oil and gas sectors
in both South-East Asia and the Middle East.
**ENDS**
For further information, please visit the Company's website
www.widecellsgroup.com, follow us on Twitter @WideCells_Group or
contact:
WideCells Group CEO - João Andrade Tel: +351 919
033 171
------------------- ------------------------- --------------
Smaller Company Broker - Jeremy Woodgate Tel: +44 (0)
Capital Ltd & Rupert Williams 20 3651 2912
------------------- ------------------------- --------------
Shard Capital Broker - Damon Heath Tel: +44 (0)
Partners LLP & Erik Woolgar 20 7186 9950
------------------- ------------------------- --------------
St Brides Partners PR - Charlotte Page Tel: +44 (0)
Ltd & Olivia Vita 20 7236 1177
------------------- ------------------------- --------------
Notes to Editors
WideCells Group PLC
WideCells Group PLC is building an integrated stem cell services
company, focused on making stem cell treatments accessible and
affordable. In June 2017, the Group was ranked as the 21st most
disruptive company globally by DISRUPT 100, an annual index
celebrating the businesses with the most potential to influence,
change or create new global markets.
The Group has three divisions:
-- CellPlan: the world's first stem cell healthcare insurance
plan with financial cover for medical treatment, travel and
accommodation expenses and concierge service to manage the
treatment process
-- WideCells: The Institute of Stem Cell Technology has been
established and is based in the University of Manchester Innovation
Centre to focus on stem cell research and regenerative medicine.
WideCells also has international cryogenics divisions specialising
in stem cell storage.
-- Wideacademy: developing an education and training division to
promote awareness of the benefits of stem cell storage across the
global general practice community.
The Group has built an experienced senior management team that
has been integral to the development of its growth and business to
date.
Stem Cell Fast Facts:
-- Cord blood (which is taken from the umbilical cord) provides
the most effective source of stem cells for families due to it
being simple, safe and painless to collect relative to other
sources of stem cells such as bone marrow - WideCells will focus on
promoting the collection and storage of this.
-- Since 2005, there has been a 300% increase in the number of
illnesses that can be treated using stem cells
-- 82 illnesses can currently be treated using stem cell procedures
-- Despite initial storage often costing no more than a few
GBPthousand, actual treatment can cost in the GBPhundreds of
thousands
White Apex General Trading
White Apex is a boutique advisory business covering wide
spectrum of services. Rooted in engineering projects, over the
years, the company has become a multi-sector, global advisory
business focused on building highly valued relationships with
individuals, corporates, institutions and Governments. Today, the
company supports clients across four divisions:
-- Corporate Advisory
-- Investment
-- Energy
-- Healthcare
White Apex is a privately owned, dynamic company combining the
diverse, complementary talents of a multi skilled team with global
experience. The company prides itself on its integrity, agility and
client-led, partnering approach. It invests time in developing a
deep understanding of its clients' needs - partnering with them to
provide solutions that enable their business, protect their assets
and grow their capital. Whether their priority is empowering their
business or increasing their presence, White Apex have the sector
understanding and proactive risk management expertise to help them
make the right decision at the right time and with the right
people. They believe that by combining these qualities and
experience they offer a distinct and compelling offering that sets
the company apart from other firms. More importantly, these
attributes help its clients solve the most exacting challenges and
seize opportunities.
This announcement contains inside information for the purposes
of Article 7 of the Market Abuse Regulation (EU) 596/2014
(MAR).
This information is provided by RNS
The company news service from the London Stock Exchange
END
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