3 Aug 2020 07:00
3 August 2020
The Barkby Group Plc
("Barkby or "The Group")
Investment in VivoPlex Group
The Barkby Group PLC, the diversified business group, is pleased to announce that as part of VivoPlex Group Ltd's ("VivoPlex") recent fundraising round, the Group has invested a further £500,000 into VivoPlex via a Convertible Loan Agreement ("CLA").
VivoPlex is a digital health company focusing on fertility and women's health. Its first product is a wireless, battery free medical device that is being developed to measure pH, temperature and dissolved oxygen level in the uterus continuously for up to seven days. The data from VivoPlex's device will be used by clinicians seeking to optimise and personalise current fertility treatments and improve IVF success rates.
As announced at the time of the Group's admission to AIM, VivoPlex is one of the Group's investments which the Dickson Family had originally. VivoPlex was introduced to the Dickson Family via contacts at the University of Southampton in 2015. The academic founders required funding to commercialise the technology and develop a novel medical device. The Dickson Family formed VivoPlex with the academic founders and begun funding the project. In 2018 VivoPlex completed a £3.0 million Series A funding round led by the Dickson Family. To date, the Dickson Family has invested approximately £1.4 million over the last four years and retains two board seats in VivoPlex. The Dickon Family own 41.1% of the issued share capital of VivoPlex.
The new investment is being funded through the repayment of the Group's Convertible Loan Note from Transcend Packaging Ltd (details of which were announced in the update on 22 July 2020). This takes the Group's total investment in VivoPlex to £2.5 million.
The CLA has a term of 36 months and an interest rate of 8% p.a., which is non-compounding, and, if payable, will accrue daily. The CLA will convert to equity at a 20% discount to the lowest price paid by investors.
VivoPlex's recent fundraising is the second tranche of its Clinical Stage Funding round, which included investment from the Future Fund. The proceeds will be used for a clinical feasibility study, given approval by the Medicine and Healthcare products Regulatory Agency and the relevant ethics committee in April 2020, whose start was delayed by COVID-19. The investment will also be used to gain a European CE mark for its first product, which will enable VivoPlex to sell the product in the market.
The investment in VivoPlex by the Group constitutes a related party transaction for the purposes of the AIM Rules by virtue of Charles Dickson, Executive Chairman and a substantial shareholder of the Group also being on the board of VivoPlex and the Dickson Family being substantial shareholders of VivoPlex. The Independent Directors consider, having consulted with the Company's nominated adviser, finnCap, that the terms upon which Barkby is participating in the funding round for VivoPlex are fair and reasonable insofar as the Company's shareholders are concerned.
Charles Dickson, Executive Chairman of the Barkby Group, commented:
"I am delighted that Barkby is able to continue supporting VivoPlex as it aims to transform fertility treatment and revolutionise understanding and improvement of women's health. The business is making excellent progress and we expect their first clinical feasibility study to conclude in Q1 2021. We are excited by the potential for VivoPlex and we believe it will create value for our shareholders."
Contacts:
finnCap Ltd (Nomad and Broker) | +44 (0) 20 7220 0500 |
Carl Holmes/Simon Hicks (corporate finance) Tim Redfern/Richard Chambers (ECM) | |
Camarco (Financial PR) | +44 (0) 20 3757 4994 |
Jennifer Renwick/Jake Thomas |
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.