Closure of subsidiary business
23 July 2009 - 4:00PM
UK Regulatory
TIDMOXE
RNS Number : 1201W
Oxeco PLC
23 July 2009
Embargo for 7.00 am on 23 July 2009
Oxeco Plc ("Oxeco "or "the Company")
Closure of subsidiary business and ongoing investment strategy
Oxeco, an investing company, made its first investment in June 2007 in a company
called Oxray Limited ("Oxray") a start up business that aimed to become a
leading provider of molecular structure determination services to both industry
and academic institutions.
At the time of the Company's investment in Oxray, the Directors advised that the
Company would continue to identify investing opportunities in the technology and
science sectors and especially that were complementary to the X-ray
crystallography molecular structure determination business.
The Company announced earlier in the year that Oxray had substantially completed
the development of its novel X-ray crystallography structure determination
software but the results of marketing efforts to establish a solid customer base
had been disappointing. Also, Oxray has not been able to strengthen and develop
its product service offering through bolt-on acquisitions in this field as
originally envisaged in June 2007.
The Company's investment in Oxray was written down to nil in its Financial
Statements for the year ended 31 January 2009 and subsequent efforts to secure a
commercial exit from the Oxray business have not been successful. The Directors
have therefore concluded that the most prudent course of action in the current
economic climate is to stop any further investment in Oxray with an emphasis on
preserving cash. Oxray will now become a dormant subsidiary whilst retaining
control of the underlying intellectual property ("IP"). In addition, the Company
will transfer an equity stake of 15% in this subsidiary to Oxray's former
Commercial Manager, Richard Cooper, as an incentive to help potentially realize
some future value from the IP.
The Company has approximately GBP2.3 million in cash and continues to seek
investments in the general science and technology sector.
Directorate Change
Oxeco announces that following the action taken in relation to Oxray, Steve
Davies, who joined the Company at the time of the Oxray acquisition, has today
resigned as a Non Executive Director from the Board.
Enquiries:
+-----------------------------------------------+-------------+
| Michael +44 (0) 207099 7266 | +44 (0) |
| Bretherton | 207099 7266 |
| Oxeco plc | |
| www.oxecoplc.com | |
| | |
| RayZimmerman /Jonathan +44 (0) 207 060 1760 | |
| Evans | |
| ZAI Corporate | |
| FinanceLtd | |
| | |
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This information is provided by RNS
The company news service from the London Stock Exchange
END
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