The Times article 22.02.202022 Feb 2020 17:26
Backers cash in on virus test success.
A surge in the value of a biotechnology company developing a test for the coronavirus has prompted a string of investors to cash in financial contracts potentially worth millions of pounds.
Novacyt - which is listed on AIM and the Paris Euronext exchange - soared in value this month after it told its shareholders that it had applied for fast track approval from regulators in the US for its test for the deadly virus, known as COVID - 19.
The companies London listed shares rose from 14p at the turn of the year to a high of 166p last week. The increase in value of > 1000% appears to have prompted investors sitting on warrants that might be highly valuable to cash them in.
Among them were Rob Powell 49, and Jim Wicks 40, the two co-founders of Primerdesign, a medical diagnostics business spun out of the university of Southampton that Novacyt bought in January 2016 for an initial £9.85 Million.
Primerdesign, now a subsidiary of Novacyt, is responsible for developing the test for the virus. It initially was backed by a £30,000 loan from Tom Brown, an expert in nucleic acid testing.
Novacyt has its headuarters in France but most of its operations in Camberley Surrey. Primerdesign is based in Southampton.
Several Investment funds including Harbert European Growth and Kreos Capital, which provided debt finance and loans to Novacyt and were rewarded with warrants also exercised them last week. Novacyt said that as a result of the warrants being exercised it had issued more than 6.37 million shares for which it had received 2.9 million euros.
The warrants held by Dr Powell and Dr Wicks were bought from them and were exercised by Accent Grave, part of the Dutch based Accent investment group,so the precise benefit that they received is not known. Dr Powell, Dr Wicks and Professor Brown could not be reached for comment.
Novacyt said it had received 33,000 orders world wide for the test, which can generate a result in less than two hours, and is stable at high temperatures, improving its efficiency and cutting transport costs. Yesterday the shares rose 59p, or 85% to 129p.
Sign In
Follow the stocks
