Seneca Growth Regulatory News (HYG)

9 Mar 2006 07:00

BioScience VCT plc09 March 2006 BIOSCIENCE VCT PLC 9 March 2006 INVESTMENT PROCESS AND STRATEGY Following the completion of a number of investments in unquoted and AIM-listedcompanies during 2005, the Board of BioScience VCT plc ("BSVCT") is pleased toreport that BSVCT is now approximately 75% invested in VCT qualifying holdings.Full information on BSVCT's portfolio of investments will be provided in theaccounts for the year to 31 December 2005 which will be published in due course. As a result of the number and type of investments that have already been madeand the reduction in the anticipated level of future investment activity, theBoard has reviewed BSVCT's investment process and strategy, and the limitedongoing requirement for specialist due diligence services that have beenprovided by Medical Marketing International Group plc ("MMI"). Due to thischange, the Board announces that, by mutual consent, it has reached conditionalagreement with MMI for the termination of the Technology Adviser contract. Theagreement is conditional upon BSVCT shareholders agreeing to a change of name(see below) and to settlement of amounts due to MMI under the agreement. BSVCTwill pay to MMI an undisclosed sum which reflects the loss of income through theearly termination of the contract. In addition, under the terms of thesettlement the Board has also agreed to table a resolution at the next AnnualGeneral Meeting concerning a change of name of BSVCT (as the word "BioScience"is associated with MMI). The Board will recommend that shareholders vote infavour of the resolution. Furthermore, under the terms of the agreement, MMIwill forego its entitlement to any future payments of carried interest, andBSVCT has agreed to indemnify and hold MMI harmless from and against anyliabilities arising out of or in connection with the services that it hasperformed for BSVCT, except for investment decisions made by BSVCT after relyingon due diligence performed by MMI. On an ongoing basis, a simpler investment decision-making process is in placewhereby future investment proposals from the Fund Manager will be referred tothe full Board for approval. The impact of this is that the InvestmentCommittee and the Scientific Advisory Board (as described in BSVCT's prospectusdated 17 October 2001) no longer operate. When necessary the Board will seekspecific scientific and technical input regarding potential investee companiesfrom appropriate specialist external experts. This change should reduce theongoing running costs of BSVCT, while allowing the Board access to appropriatespecialist advice that is relevant to the specific opportunity underconsideration. ENDS This information is provided by RNS The company news service from the London Stock Exchange