Last checked at 18 Nov 2014 07:00
18 November 2014
Provexis plc
Collaboration with University of Oslo - Fruitflow® and Blood Pressure
Issue of share options
Provexis plc ('Provexis' or the 'Company'), the business that develops and licenses the proprietary, scientifically-proven Fruitflow® heart-health functional food ingredient, is pleased to announce it has signed a collaboration agreement with the University of Oslo to undertake further research into the relationship between Fruitflow® and blood pressure regulation.
The University of Oslo's research team will be led by Professor Asim Duttaroy, Group Leader of Chronic Disease at the Faculty of Medicine, who was the original inventor of Fruitflow®. Provexis' work under the collaboration will be led by Dr Niamh O'Kennedy, a research chemist specialising in the field of natural products chemistry who played a key role in the development of Fruitflow®, and the health claim for Fruitflow® which was adopted by the European Food Safety Authority ('EFSA').
Provexis has also signed a related option agreement with Inven2 AS ('Inven2'), the technology transfer office at the University of Oslo ('the University') which is responsible for commercialising the University's research.
Recent work undertaken by the University has shown that the Company's Fruitflow® technology has a potential new bioactivity, leading to blood pressure lowering effects which would be of relevance to a large number of consumers and patients with a wide range of cardiovascular conditions.
The collaboration agreement will see the parties undertake a two stage work plan, with the first stage to be laboratory based and focused on developing the science, with major areas including fractionation, testing, dosage and further IP development. Subject to the results of the first stage of the work plan it is envisaged that the second stage will see the parties conduct a small clinical trial by way of a proof of principle study.
The Company will provide primary funding for the collaboration work and the associated patent filings on a tightly managed budget, with the results from the collaboration being jointly owned by the Company and the University. The option agreement between the Company and Inven2 gives the Company an exclusive option to license the University's existing background intellectual property, and any new joint intellectual property developed as part of the collaboration.
The Company has on 17 November 2014 granted a total of 10,000,000 new options over Ordinary Shares ("Options") under the Provexis 2005 share option scheme to Professor Asim Duttaroy and Dr Niamh O'Kennedy, with an exercise price of 0.67 pence, being the closing mid-market price on 17 November 2014. The Options are exercisable between 3 and 10 years from date of grant and are subject to performance criteria, including share price appreciation. The Company believes the grant of these new Options will closely align the interests of the option holders with those of shareholders.
Following the issue of the new Options the total number of Ordinary Shares under option which could be issued if all of the performance criteria are met are 120,640,510 Ordinary Shares.
Dawson Buck, Chairman of Provexis, commented:
"We are delighted to be working on this collaboration with Professor Asim Duttaroy and the University of Oslo. The collaboration will seek to build on the work undertaken by the University with the company's Fruitflow technology, which has shown that Fruitflow has potential blood pressure lowering effects which would be of relevance to a large number of consumers and patients with a wide range of cardiovascular conditions.
The company is ideally positioned to develop technologies designed to extend the product claims of our core Fruitflow product, on a carefully managed and costed basis, and this new collaboration is an important step in maximising the opportunities available to commercialise Fruitflow, to the benefit of long term shareholder value."
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For further information please contact:
Provexis plc Tel: 07917 670260
Dawson Buck, Chairman enquiries@provexis.com
Ian Ford, Finance Director
Cenkos Securities plc Tel: 020 7397 8900
Bobbie Hilliam