Launch of 5 per cent Placing
IP Group PLC
11 May 2006
For immediate release 11 May 2006
IP GROUP PLC
('IP Group' or 'the Company')
Launch of 5% Placing
IP Group plc (AIM: IPO), formerly IP2IPO Group plc, is pleased to announce the
launch of a Placing of up to 11,452,650 new ordinary shares of 2 pence each (the
'Placing Shares') for cash with institutional investors, representing a maximum
of 5 per cent. of the current issued share capital of the Company (the 'Placing
'). Further details of the Placing will be announced in due course.
The proceeds of the Placing will be used primarily to finance the entry into
further long-term partnerships with leading research universities with which the
Company is already in discussions.
The Placing Shares are being placed by Lehman Brothers International (Europe),
as sole bookrunner, and KBC Peel Hunt Ltd, as joint lead manager, and are being
placed conditional on admission to trading on the AIM Market of London Stock
Exchange plc ('Admission'). Application has been made for Admission of the
Placing Shares and it is expected that Admission will become effective and
dealings in the Placing Shares will commence by 17 May 2006. The Placing Shares
to be allotted will be credited as fully paid and will rank pari passu in all
respects with the Company's existing ordinary shares of 2p each, including the
right to receive all dividends and distributions declared, made or paid on or
after the date of their allotment.
Alan Aubrey, Chief Executive Officer, commented: 'We believe that the Company is
well positioned to exploit the expertise and market position that it has gained
from working with its existing university partners to establish further
partnerships with additional leading universities in the UK. We are intending to
partner with universities with sufficient breadth and depth of research and the
right innovative culture to build a diversified portfolio of high growth spin
out companies over the lifetime of a partnership.'
Lehman Brothers International (Europe) and KBC Peel Hunt Ltd are each acting
exclusively for IP Group and are not acting on behalf of any other person and
will not be responsible to any person, other than IP Group, for providing the
protections afforded to their respective clients or for advising any such person
in connection with the Placing.
For more information please contact:
IP Group
Alan Aubrey, Chief Executive Officer 020 7489 5200
Buchanan Communications
Tim Anderson, Mark Court 020 7466 5000
Lehman Brothers International (Europe)
Stephen Pull, Mark Hutt 020 7102 1000
KBC Peel Hunt Ltd
Megan MacIntyre 020 7418 8900
Notes for editors
About IP Group plc
IP Group is an intellectual property (IP) company that specialises in
commercialising university technology. The Company was founded in 2001 and
listed on the AIM Market of the London Stock Exchange plc in October 2003. IP
Group's first partnership was with the University of Oxford. In return for an
investment of £20 million, IP Group has acquired 50 per cent of the University
of Oxford's equity in spin-out companies and technology licenses based on
intellectual property created at the Chemistry Department until 2015. In
November 2003, IP Group created a £5 million seed capital fund for investing in
spin-out companies across the University of Oxford, not just those originating
within the Chemistry Department.
In March 2002, IP Group entered into a second long-term partnership with the
University of Southampton. Under the terms of this partnership, IP Group is
committed to working with the University of Southampton in the identification
and facilitation of spin-out companies from across the University of Southampton
and to investing £5 million in early-stage University of Southampton spin-out
companies over a four year period in return for equity stakes in those
companies. In addition, IP Group also received a 20 per cent stake in
Southampton Asset Management Limited, a company that has been formed to hold the
University's equity stakes in its spin-out companies. The partnership has a term
of at least 25 years.
IP Group entered into its third long-term partnership in May 2003 with King's
College London. IP Group works with King's College London to help identify and
progress commercialisation opportunities as well as invest £5 million in seed
capital in spin-out companies from King's College London over a five year period
in return for equity stakes in those companies. In addition, IP Group receives
20 per cent of King's College London's equity in spin-out companies and
technology licenses. The partnership has a term of 25 years.
In October 2003, IP Group announced a fourth partnership with the Centre for
Novel Agricultural Products ('CNAP'), based at the University of York. CNAP is a
flagship research centre that specialises in plant and microbial gene discovery.
Under the terms of the partnership a new company, Amaethon Limited, has been
created which has the right to commercialise CNAP's IP for 25 years. IP Group
has invested £1.15m in Amaethon Limited in return for a 40 per cent. equity
stake in Amaethon Limited (the remaining equity being owned by the University of
York) and will also invest in the spin-out companies based on CNAP's IP which
Amaethon Limited creates.
In June 2004, IP Group acquired Top Technology Ventures Limited, an investment
adviser to early stage technology funds. This combines IP Group's expertise in
the creation of new ventures based on world leading university IP with Top
Technology's focus on making early stage venture capital investments.
In January 2005, IP Group acquired Techtran, a company set up in 2002 to
commercialise university intellectual property under a long-term technology
commercialisation contract with the University of Leeds. Under the terms of the
contract Techtran receives a significant (30 per cent.) interest in spin-out
companies created and technology licences negotiated, in return for the
provision of technology transfer services to the University.
In May 2005, IP Group announced the launch of Modern Biosciences, which will
in-license life science intellectual property created by medical researchers at
universities with which IP Group already has partnerships, other universities in
the UK and similar academic and charitable research institutions. Modern
Biosciences' objective is to further develop the intellectual property which it
in-licenses with a view to creating substantial value either by subsequently
licensing these development programmes to the pharmaceutical industry or via the
creation of new ventures.
In December 2005, IP Group entered into its sixth long-term partnership with the
University of Bristol. IP Group will work with the University of Bristol to help
identify and progress commercialisation opportunities as well as invest an
initial £5 million in seed capital in spin-out companies from the University of
Bristol over a five year period in return for equity stakes in those companies.
In return, IP Group will receive 13.3 per cent of equity spin-out companies from
the University of Bristol at the time that the spin-out company is established
prior to investment. The partnership has a term of 25 years.
In February 2006, IP Group entered into its seventh long-term partnership with
the University of Surrey. IP Group will work with the University of Surrey to
help identify and progress commercialisation opportunities as well as invest an
initial fund of up to £5 million in seed capital in spin-out companies from the
University of Surrey in return for equity stakes in those companies. In
addition, IP Group will receive 13.3% per cent of in spin-out companies at the
time that the company is established prior to investment. The partnership has a
term of 25 years.
In March 2006, IP Group entered into an exclusive long-term partnership with the
University of York. The partnership is in addition to IP Group's current
partnership with the Centre for Novel Agricultural Products, IP Group will work
with the University of York to help identify and progress commercialisation
opportunities as well as invest an initial fund of £5 million in seed capital in
spin-out companies from the University of York in return for equity stakes in
those companies. In addition, IP Group will receive 25% of the equity in any
spin-out company from the University at the time that the company is
established, prior to investment, if IP Group invests in the company from the
fund and 15% of the equity if it does not invest from the Fund. IP Group will
also receive 10% of any income which the University of York receives from
licencing during the lifetime of the partnership. The partnership has a term of
25 years.
To date, 7 spin-out companies from the IP Group portfolio have listed on the AIM
Market of London Stock Exchange plc: Offshore Hydrocarbon Mapping plc, Synairgen
plc, VASTox plc, Proximagen Neuroscience plc, GETECH Group plc, Syntopix Group
plc and Oxford Catalysts Group plc. There has been one trade sale: Toumaz
Technology Limited was sold to Nanoscience Inc.
This information is provided by RNS
The company news service from the London Stock Exchange
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