OXT.L Regulatory News (OXT)

22 Feb 2005 16:37

Oxford Technology Vent Cap Tst PLC22 February 2005 Announcement 22 February 2005 OXFORD TECHNOLOGY VENTURE CAPITAL TRUST PLC (OTVCT OR The Company) OTVCT announces that Avidex is making good progress with its science. Its leadproduct, Rhudex, a possible treatment for rheumatoid arthritis, is making solidprogress towards the clinic and it is hoped that phase 1 clinical trials willstart in April 2005. However, the funding climate for biotech companies in theUK has become much more difficult over the last few years, and there hasbeen a tendency for large venture capital funds to invest in later rounds onterms which are potentially damaging to the interests of the early investors.Avidex is currently raising capital, but, at the time of writing, there isconsiderable uncertainty about the terms and how they will affect earlyshareholders. This makes it difficult to value this investment until the precise terms of theinvestment are known, or in the final analysis, until an exit is achieved. Inthe light of this uncertainty and to be prudent, OTVCT has decided to hold itsinvestment in Avidex at cost, rather than at the price per share paid by thelast significant investor, which was the method previously adopted. This has the effect of reducing the valuation of OTVCT's holding in Avidex from£1.435m to £300,000 which is equivalent to a reduction of 23p per share in theNet Asset Value of Oxford Technology VCT. Contacts: Lucius Cary / Matthew Frohn OTVCT 01865 784466www.oxfordtechnology.com This information is provided by RNS The company news service from the London Stock Exchange