Last checked at 27 Nov 2015 07:00
27th November 2015
Braveheart Investment Group plc
('Braveheart', the 'Company' or the 'Group')
Disposal of interest in Investee Company
The board of Braveheart is pleased to announce that it has agreed terms to sell its interest in Biopta Limited ("Biopta") to ReproCELL Incorporated a Japanese listed company ("ReproCELL"). The sale is conditional, inter alia, on all of the shareholders in Biopta ("Biopta shareholders") entering into a sale and purchase agreement with ReproCELL (expected to take place in early December) and on subsequent completion of the transaction (expected in mid-December). The total consideration is to be satisfied as to approximately 50 per cent. in cash and 50 per cent. in ReproCELL shares. Based on ReproCELL's share price on 20 November 2015 ("Issue price"), the aggregate consideration is £5.2 million.
The consideration to be paid to Braveheart (and three other larger Biopta shareholders) is to be satisfied entirely in ReproCELL shares. Based on the Issue price, the amount payable to Braveheart amounts to £406,479, compared with its valuation in Braveheart's accounts at 30 September 2015 of £395,889. Neither Braveheart nor the other Biopta shareholders receiving ReproCELL shares is locked in.
Biopta operates as a niche Contract Research Organisation and has established itself as a world leader in the use of human tissues to better predict drug safety and efficacy prior to clinical trials. The company is a spin-out from Glasgow Caledonian University. The abbreviated unconsolidated accounts for Biopta showed that it had net assets of £236,582 as at 31 March 2015.
The proceeds of the sale of the ReproCELL shares, as and when received, less a modest retention, will increase the Company's cash reserves and will be used for general working capital.
Further information:
Braveheart Investment Group plc
Trevor Brown, CEO Tel: +44 1738 587555
Sanlam Securities UK Limited (Nominated Advisor and Broker to Braveheart)
Lindsay Mair / James Thomas Tel: +44 20 7628 2200