Neometals Regulatory News (NMT)

11 Jul 2005 14:14

NMT Group PLC11 July 2005 NMT Group PLC Trading Update In January 2005 NMT Group PLC ("the Company") signed a letter of intent for themanufacture and distribution of its 2nd Generation retractable safety syringe inthe Far East which provided for a license fee stage payment from the prospectivelicensing partner at the beginning of July 2005, subject to agreement of aformal contract. Although the Company remains in communication with the prospective licensingpartner, to date no formal contract has been signed nor has any stage paymentbeen received. The outcome and timing of this contract is now uncertain andoutside of the Company's control. The Safety Needle Unit is production ready, with the project fully costed andsub-contract manufacturers identified. With regard to the major pharmaceuticalcompany, which had decided to postpone proceeding with a license for themanufacture and distribution of the device following the detailed marketingstudy, discussions are anticipated to resume in autumn 2005, aimed at a 2007launch. Additional discussions on licensing the Safety Needle Unit began in June withtwo US-based companies, one a major pharmaceutical company and the other a majormedical device supplier. Both companies have expressed interest in taking theproduct to the next stage of their internal evaluations. The Company's balance sheet remains strong with cash at 30th June 2005 standingat £6.5million. However, given the difficulty in predicting the outcome of the above licensingdiscussions, the Board now intends to explore all options for maximising thevalue of the Company's assets as rapidly as possible, including the sale of theCompany or the sale of its business operations followed by a sale or mergerstrategy for obtaining the best value for shareholders for the Company's cashassets. The Company will keep shareholders informed of further developments. Enquiries: Contact: Tony FletcherChairmanNMT Group PLC Tel: 01506 445000 Mobile: 07836 725246 This information is provided by RNS The company news service from the London Stock Exchange