16 Apr 2015 07:00
AorTech International Plc ("AorTech" or the "Company")
Post Year End Update to Shareholders on litigation and other matters.
Further to the end of the Company's financial year on 31 March 2015 the Company provides the following update on its financial position, trading and litigation with its former CEO.
The Company confirms that it continues to pursue its legal dispute against its former CEO Frank Maguire. Mr. Maguire has made a counterclaim for alleged non-payment of expenses totalling $168,000. The Board believes that this claim is of little merit and appears to include expenses already reimbursed. The Company will continue to defend the claim vigorously. As anticipated, the Company has also brought a lawsuit against Mr. Maguire's new business interest and certain related parties. The other parties named in the Company's related action asserted counterclaims alleging abuse of legal process. Those counterclaims have been dismissed.
Overall, the Board does not believe that there has been any material change in the status of the litigation. As previously announced, AorTech maintains insurance in place to protect its intellectual property and the Board can confirm that 90 % of the ongoing legal costs of the disputes are covered by that insurance.
As set out in the interim results announcement the manufacturing license is not generating the levels of revenues that we had first hoped for however we are in continuing discussions regarding opportunities between manufacturing and product licensees that could see an improvement in this business area. There is no further update or material change to other licenses.
The Company's cash position at the end of March stood at $360,000, a slightly improved position than at the half year stage. The long standing debtor continues to meet its payment schedule and should be recovered as anticipated, however the $175,000 debtor mentioned at the interim stage has now grown to $275,000. A blue chip has a secondary payment obligation on this debt and the process of ensuring recovery is being considered. The Company's financial position remains reliant on the timely collection of the debtor book as set out in the interim results.
It is currently too early to provide guidance on full year turnover as final quarter royalties have still to be notified by licensees.
Enquiries:
AorTech International plc
Bill Brown, Chairman
Tel: +44 (0) 7730 718296
finnCap
Stuart Andrews/Giles RollsfinnCap as Nominated AdviserTel: 020 7220 0500