(Alliance News) - Yourgene Health PLC on Tuesday said it will sell its subsidiary Yourgene Health Taiwan Co Ltd to INEX Innovate Pte Ltd for up to USD4 million
Yourgene shares were up 13% at 0.24 pence each in London on Tuesday morning.
The Manchester, England-based molecular diagnostic group said the terms of the divestment include a
USD1 million upfront payment due on the closing date, plus a loan agreement of USD1 million payable within two tears of the closing date. This also includes an earn-out consideration of up to USD2 million.
INEX Innovate is a Singapore based molecular diagnostics company focused on women's and fetal health.
Yourgene said the disposal is subject to approval from the Taiwanese government, and will also need to complete a pre-closing restructure to facilitate the transfer of retained people and assets. The company expects the conditions to be satisfied within the next three months and to close the deal before September.
Yourgene first announced in April it was in talks relating to the potential divestment of its Taiwanese laboratory.
Yourgene added the disposal will allow it to focus on its strategic efforts to expand its Asia Pacific product-based activities and reduce its ongoing expenditure by around GBP500,000.
Chief Executive Officer Lyn Rees says: "We look forward to developing a lasting relationship with INEX as they act as our exclusive laboratory partner and service provider across Asia. We will update shareholders once the completion of the transaction has occurred in due course."
By Sabrina Penty, Alliance News reporter
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