RNS Number : 7214B
Neos Resources PLC
20 April 2012
NEOS Resources plc ("NEOS" or the "Company")
Sale of Intellectual Property and Cumulative Redeemable Preference Shares to Quinvita N.V.
On 24 November 2010, NEOS announced the disposal of its subsidiaries Quinvita Limited ("Quinvita") and D1 Oils Plant Science Limited which owned and conducted substantially all of the Company's Jatropha plant science and technology activities, excluding its animal feed programme. NEOS received as consideration 800,000 5 per cent. preference shares of £1.00 each in Quinvita (the "Preference Shares"), which are redeemable by 1 November 2015, and an entitlement to various royalties on Jatropha revenues generated by the Quinvita group.
NEOS announces today that it has entered into a conditional agreement to sell to Quinvita N.V. the germplasm and intellectual property relating to the animal feed programme previously retained by the Company for a cash consideration of £300,000 and the Preference Shares in return for a secured loan of £372,000, accruing interest at 10 per cent. per annum ("Agreement"). The loan is to be secured over the germplasm and the animal feed programme intellectual property and is repayable within 5 years.
Both the animal feed programme and the Preference Shares have been fully written off in NEOS's accounts. In the 6 months ended 31 December 2011, the animal feed programme incurred costs of approximately £187,000 and no dividends were recognised in respect of the Preference Shares.
All other rights and obligations between the parties and members of their respective groups and associated parties, including approximately £60,000 of royalties due to NEOS, have (subject in the case of Quinvita to compliance by Quinvita with various terms of the Agreement) been waived.
NEOS will however retain the right to exploit in perpetuity at nil cost the current animal feed programme intellectual property and, at a preferential rate, any future improvements or modifications to the current animal feed programme intellectual property.
Completion of the Agreement is conditional upon Quinvita N.V., a subsidiary of Quinvita, concluding a share issue to raise €1,000,000 by no later than 1 June 2012.
Commenting on the sale, Steven Rudofsky stated:
"The Board believes this to be an excellent deal for the Group as it enables us to liquidate our animal feed programme technology whilst retaining access to the technology on preferential terms and to secure repayment of £372,000 of the redeemable Preference Shares. The Group will utilise the proceeds to increase its working capital investment in its Indian operations which should enable it to generate increase profits in India."
NEOS Resources plc
Steven Rudofsky +44 (0) 20 7499 5626
Chris Fielding +44 (0) 20 7220 0470
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