(Alliance News) - Barkby Group PLC on Monday said subsidiary Cambridge Sleep Sciences is in advanced negotiations with "several household names" for multi-year enterprise licensing deals for its SleepEngine technology.
At the same time, Barkby said it is considering options to sell CSS.
Barkby shares more than tripled to 9.00 pence each on Monday morning in London, after closing at 2.80p each on Friday. It now has a market capitalisation of GBP10.8 million.
Abingdon, England-based Barkby invests in roadside property and in consumer and life sciences companies. It also operates a pub chain.
It said CSS expects to generate more than GBP10 million in revenue over the next three years, starting in the fourth quarter of this years, based on licence deals already signed.
On Sunday, Sky News reported that Barkby had decided to sell CSS to focus on its roadside real estate assets portfolio, with a potential value of GBP50 million for the Barkby subsidiary.
Barkby on Monday said that it has appointed advisers to conduct a strategic review of its investment in CSS and confirmed that it aims to focus on its roadside real estate strategy.
"There can be no certainty that any offer or sale will ultimately be made for CSS or the value of any such proposed deal," said Barkby Executive Chair Charles Dickson said, adding:
"We expect CSS to become a significant business in its own right and the purpose of the strategic review is to evaluate the most appropriate corporate setting and structure for the company to allow it to develop its full potential as well as what is in the best interests of Barkby's shareholders."
By Tom Budszus, Alliance News reporter
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