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Oxford Pharmascience plans demerger of main operations

Fri, 10th Nov 2017 14:38

(ShareCast News) - Listed company Oxford Pharmascience announced its intention to demerge certain operating and other assets and the business of the group to Oxford Pharmascience Limited (OPL) on Friday, following a board strategic review of the group's operations.

The AIM-traded firm said the demerger would constitute a "fundamental disposal" under the AIM rules, and would be subject to shareholder approval at the general meeting.

It said the objective of the demerger was to maximise value to existing shareholders through ongoing commercialisation of the group's existing commercial and development assets and intellectual property in a private vehicle.

It would also maximise shareholder value by providing a continued investment in a rule 15 cash shell seeking to deploy the company's remaining cash assets through the acquisition of an operating business or operating assets, with such an acquisition constituting a reverse takeover, the board explained.

"The board believes the demerger to be in the best interests of the company and existing shareholders," it said it a statement.

It said the demerger would allow OPL to continue commercialisation efforts of the group's OXPzero platform technology as a private company with cash reserves of approximately £1.3m, whilst revenue would continue to be generated from the on-going sales of calcium chew products.

Existing shareholders would maintain a continued investment in that business through the receipt of OPL shares to be distributed to them in the same proportions as their existing holdings in the company on the record date.

"Existing shareholders [will] also retain the potential upside from continuing interests in the company via the investment of its remaining cash resources of approximately £19.3m as at 31 October 2017 into other opportunities," the board added.

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