Sale of Optim Trade and Assets
12 February 2015
Avacta Group plc
("Avacta" or "the Group")
Sale of Optim Trade and Assets
Strategic Focusing of Group's Activities
Avacta Group plc (AIM: AVCT), the global provider of proprietary diagnostic tools, consumables and reagents for human and animal healthcare announces, it has completed a sale of the trade and selected assets of its Optim product ("Optim") to Unchained Labs Inc.
The Group will receive up to $5 million in cash, with $3.5 million received as initial consideration and up to $1.5 million to be received dependent on the future sales performance of the product over the period to 31 December 2019.
Optim formed substantially all of the Avacta Analytical operating segment of the Group's operations and, for the year ended 31 July 2014, this operating segment reported revenues of £1.6 million and an operating profit of £0.1 million. The Group's carrying value for Optim is approximately £1.7 million, which includes a related deferred tax liability of approximately £0.4 million.
In addition, the Group carried a non-cash, non-current intangible asset of goodwill related to the Avacta Analytical operating segment of £4.9 million which will be charged to the income statement.
Following the sale of Optim, the Group will apply the proceeds of the sale primarily towards the continuing development and commercialisation of its Affimer technology.
Dr Alastair Smith, Group Chief Executive commented:
"For some time now, the principle focus of the Group's resources has been on the Affimer opportunity and the sale of the Optim product is strategically important as it allows the Group to focus even more intensively on the development and commercialisation of Affimers.
"Optim is now established as a product in its market and the opportunity is substantial for an acquirer with significant sales and marketing resources to put behind it.
"The Group has a huge opportunity with the Affimer technology to grow significant value for shareholders. It is important for us to focus on that and I am therefore pleased that we have been able to take this strategic step."
Enquiries:
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Avacta Group plc Alastair Smith, Chief Executive Officer Tim Sykes, Chief Financial Officer |
Tel: +44 (0) 844 414 0452 |
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Numis Securities Limited Michael Meade / Freddie Barnfield - Nominated Adviser James Black - Corporate Broking |
Tel: +44 (0) 207 260 1000 |
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Media Enquiries Walbrook PR Ltd Mike Wort / Anna Dunphy |
Tel: +44 (0) 207 933 8780 avacta@walbrookpr.com |
About Avacta Group plc - www.avacta.com
Avacta Group plc is a global provider of innovative technologies, consumables and reagents for the life science markets, from drug discovery to diagnostics. Avacta operates through two divisions:
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Avacta Animal Health |
Veterinary diagnostics reference laboratory and diagnostic kit provider. |
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Avacta Life Sciences
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Novel non-antibody affinity reagents called Affimers, with a wide range of Life Science applications in diagnostics, drug and biomarker discover and biotech research and development. |
This information is provided by RNS
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