Last checked at 23 Jul 2009 07:00
Embargo for 7.00 am on 23 July 2009
Oxeco Plc ("Oxeco "or "the Company")
Closure of subsidiary business and ongoing investment strategy
Oxeco, an investing company, made its first investment in June 2007 in a company called Oxray Limited ("Oxray") a start up business that aimed to become a leading provider of molecular structure determination services to both industry and academic institutions.
At the time of the Company's investment in Oxray, the Directors advised that the Company would continue to identify investing opportunities in the technology and science sectors and especially that were complementary to the X-ray crystallography molecular structure determination business.
The Company announced earlier in the year that Oxray had substantially completed the development of its novel X-ray crystallography structure determination software but the results of marketing efforts to establish a solid customer base had been disappointing. Also, Oxray has not been able to strengthen and develop its product service offering through bolt-on acquisitions in this field as originally envisaged in June 2007.
The Company's investment in Oxray was written down to nil in its Financial Statements for the year ended 31 January 2009 and subsequent efforts to secure a commercial exit from the Oxray business have not been successful. The Directors have therefore concluded that the most prudent course of action in the current economic climate is to stop any further investment in Oxray with an emphasis on preserving cash. Oxray will now become a dormant subsidiary whilst retaining control of the underlying intellectual property ("IP"). In addition, the Company will transfer an equity stake of 15% in this subsidiary to Oxray's former Commercial Manager, Richard Cooper, as an incentive to help potentially realize some future value from the IP.
The Company has approximately £2.3 million in cash and continues to seek investments in the general science and technology sector.
Directorate Change
Oxeco announces that following the action taken in relation to Oxray, Steve Davies, who joined the Company at the time of the Oxray acquisition, has today resigned as a Non Executive Director from the Board.
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