21 Apr 2020 07:00
The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 ("MAR"). With the publication of this announcement via a Regulatory Information Service, this inside information is now considered to be in the public domain.
21 April 2020
The Barkby Group PLC
("Barkby" or the "Group")
Completion of Agreement with Cambridge Sound Technologies
Barkby Life Sciences, a division of The Barkby Group PLC, is pleased to announce that further to its announcement on 3 March 2020, it has signed an agreement with Cambridge Sound Technologies UK Ltd for the exclusive design of, and acquisition of the intellectual property rights related to, a device to improve and facilitate natural sleep ("the Acquisition").
Barkby has agreed revised terms which now comprise initial cash consideration of £120,000 to cover design costs incurred to date with two further payments of £60,000 upon completion of certain milestones. The acquiring vehicle has been granted a license for the algorithm of the product on a perpetual basis in exchange for a royalty payment per unit sold.
Barkby expects to advance a total of £1.5m of working capital into the acquiring vehicle, Cambridge Sleep Sciences Ltd. Commercial production of the device is expected to commence in the second half of 2020.
Barkby will subsequently own 85.0% of Cambridge Sleep Sciences Ltd, with the remaining 15.0% by the management team.
Dr Julian Stone and Dr Chris Dickson have been appointed CEO and Executive Chairman, respectively, of Cambridge Sleep Sciences Ltd. Dr Julian Stone has over 20 years' experience in medical technology, big data and analytics and has a strong track record of advising SMEs on strategic, operational and commercial planning. Dr Chris Dickson has 37 years' experience in the medical industry, holding a number of roles including Head of Healthcare Services for Bupa and Director of International Strategy at EMIS Group. He currently holds several non-executive director roles in the healthcare technologies space and is Executive Chairman at VivoPlex Group Ltd. Charles Dickson and Douglas Benzie, Executive Chairman and Chief Financial Officer of the Group respectively, will also join the Board of Cambridge Sleep Sciences Ltd.
The Board expects that Cambridge Sleep Sciences Ltd will be earnings accretive to the Group's financial performance in the year ending 30 June 2021.
Charles Dickson, Executive Chairman of the Barkby Group, commented:
"Barkby is very excited to be working with Cambridge Sound Technologies on the development of this revolutionary product that has the potential to improve the lives of millions of people suffering from sleep related issues. The market opportunity for this product is enormous, and this agreement, following so soon after VivoPlex's announcement yesterday regarding the MHRA approval for the commencement of its clinical feasibility study, is further evidence of Barkby Life Sciences' positive momentum in spite of the challenging market backdrop."
Contacts:
finnCap Ltd (Nomad and Broker) | +44 (0) 20 7220 0500 |
Carl Holmes/Simon Hicks (corporate finance) Tim Redfern/Richard Chambers (ECM) |
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Camarco (Financial PR) | +44 (0) 20 3757 4994 |
Jennifer Renwick/Jake Thomas |
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Notes to editors
The Barkby Group PLC is a diversified group of high growth, high quality businesses run by an entrepreneurial and experienced management team. The existing wholly owned businesses within Barkby include; Commercial Property Development, Barkby Life Sciences, Barkby Hospitality (comprising Barkby Pubs and Workshop Coffee) and Centurian Automotive. Barkby's strategy is to accelerate and maximise opportunities within its existing businesses as well as continue to source and invest in cash generative, growth businesses with the ability to disrupt.