Major licensing deal for Cambridge Sleep Sciences

Barkby Group PLC

06 June 2023

 

This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with the company's obligations under Article 17 of MAR.

Barkby Group PLC

("Barkby" or the "Company")

Cambridge Sleep Sciences Announces Major Licensing Deal

Barkby (AIM: BARK) announces that its subsidiary, Cambridge Sleep Sciences, ("CSS") the science-based sleep technology business behind SleepHub®, has granted a five-year global license, (the "Agreement") to Sleep Sense International Limited, ("SSI") enabling it to manufacture a Smart Pillow using CSS's SleepEngine® platform.

Under the terms of the Agreement SSI holds exclusive rights in the pillow market subject to a Minimum Order Quantity, ("MOQ") of 25,000 units in the first 12 months. CSS will grant a 12-month extension of this exclusivity subject to a MOQ of 60,000 units for year two of the license.

Based on these MOQ's, CSS expects the license to generate royalty payments of £1.25 million in the first 12 months and £3.0 million in year two for the Company. MOQs and payments for years three, four and five will be agreed in November 2024.

Dr Julian Stone, CEO of CSS, said: 

"We are excited to be working with Sleep Sense International in such a large market. By embedding SleepEngine® we can now deliver our unique audio solution to aid and improve people's sleep through most third-party speakers, headphones and earbuds.

"The Agreement changes the market opportunity for us as we move the business towards a Software As A Service business model. We expect this licensing deal to be the first of many for SleepEngine®."

Mike Hobson, Managing Director of SSI said:

"We are really excited being partnered with CSS in this exciting new venture in creating the ultimate sleep product. With our experience of manufacturing quality natural sleep products combined with this new technology, developed with CSS, plus our global reach of customers new and old, we know this will change the whole conception of sleep."

SleepEngine® technology has been developed and refined over more than a decade by a team of researchers, scientists, sound and medical experts. The result is a unique audio solution that helps to retrain the brain to restore healthy natural sleep patterns, a key component for mental, physical, and cognitive wellbeing. SleepEngine® technology offers a unique integration opportunity with existing or new third-party products capable of delivering high quality audio.

SSI is a white label bedding company specialising in helping brands and retailers develop and launch new product propositions within the bedding category. Its brands include, Laura Ashley, Mammoth, Sleepeezee, Pillowheadzzzz, Airsprung, Millbrook and Staingard. 

CSS has agreed a separate global license for SleepEngine® with a multinational technology company and will be announcing more details shortly.

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For more information

Barkby Group plc Charles Dickson, Executive Chairman	c/o Montfort Communications
finnCap Ltd (Nomad and Broker) Carl Holmes and Simon Hicks (Corporate Finance) Tim Redfern and Richard Chambers (ECM)	[phone]
Montfort Olly Scott Georgia Colkin	[phone]

About Barkby

Barkby is a roadside real estate business focused on building and scaling a high-quality portfolio of modern, ESG-compliant assets. It is in the process of exiting its non-core investments, (comprising Workshop Coffee and Cambridge Sleep Sciences).

About Cambridge Sleep Sciences Ltd

Cambridge Sleep Sciences Ltd, part of the Life Sciences division of The Barkby Group Plc, develops technology which improves natural sleep. Using the principles of neuroscience and cutting-edge technology to enhance brain activity during sleep, its innovative solutions aim to improve health, wellbeing and enhance quality of life. 

The company prides itself on delivering the first neuroscience-based electronic sleep product, SleepHub^®, to help improve and facilitate natural sleep. 

Find out more at: www.cambridgesleepsciences.com

 

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