(Sharecast News) - Rapid testing kits manufacturer Abingdon Health has reached a settlement agreement with the Department for Health and Social Care on outstanding invoices payable to the group for lateral flow tests and component stock.
Abingdon Health said on Tuesday that it will receive a contractually required cash payment of £6.3m from DHSC on or before 22 July, with £1.5m of the cash payment to be held under charge until the outcome of an ongoing judicial review.
The AIM-listed group also stated ownership of all outstanding component stock procured on behalf of DHSC in 2020 and 2021 will be transferred to the company, while it will also receive joint ownership of the intellectual property of its AbC-19 Covid-19 antibody test, and make lower royalty payments to DHSC on sales of said test.
Abingdon also highlighted that the cash received from DHSC will provide it with additional working capital to be deployed in order to help fund various growth initiatives currently underway.
As of 1210 BST, Abingdon shares had surged 52.35% to 14.47p.
Reporting by Iain Gilbert at Sharecast.com
Abingdon Healt. (ABDX)