Flotation of IP2IPO
Evolution Group PLC
30 September 2003
NOT FOR DISTRIBUTION IN THE UNITED STATES, CANADA, JAPAN, AUSTRALIA OR THE
REPUBLIC OF IRELAND
30 September 2003
The Evolution Group Plc
Announcement of the flotation of IP2IPO on AIM
The Evolution Group Plc ("Evolution"), the investment bank and retail fund
management group, is pleased to confirm that its subsidiary, IP2IPO Group plc ("
IP2IPO" or the "Group"), the intellectual property (IP) business, is planning a
flotation. IP2IPO's intention is to seek admission for its shares to trade on
AIM ("Admission") by way of a placing (the "Placing").
IP2IPO's business is to create value for its shareholders through the
commercialisation of university developed IP. IP2IPO is seeking to raise £25
million of new money (net of expenses) and its market capitalisation on
Admission is expected to be in the region of £100-110 million. KBC Peel Hunt
Ltd has been appointed as the nominated adviser and broker to IP2IPO.
IP2IPO Limited (a wholly owned subsidiary of IP2IPO) has long term arrangements
("Partnerships") with the University of Oxford (chemistry department), the
University of Southampton, King's College London and (conditional on Admission)
with the University of York (Centre for Novel Agricultural Products, ("CNAP")).
The principal components of the Group's business model are:
1) the entry into long-term arrangements with universities under which the
Group receives a significant interest in equity positions in spin-out companies
and/or income derived from the licensing of IP;
2) working with universities to develop and improve the processes by which
universities seek to commercialise their IP; and
3) working with spin-out companies in which the Group has an interest to
improve their chances of success.
The Directors of IP2IPO believe that the Group's business model has a number of
important advantages. First, the Partnerships that the Group has entered into
are long-term, varying in term from 15 to 25 years. A second key advantage is
that the Group's business model is sufficiently flexible to permit the Group to
create value in two different ways: the formation of spin-out companies and the
licensing of IP. Thirdly, the Group's business model enables it to benefit from
the considerable investment in university infrastructure as well as the
resources which universities devote to the creation, management and protection
of IP. This means that the Group is able to focus on creating value from IP
without bearing the full costs of creating and protecting the IP itself, which
are borne primarily by the university or the spin-out companies.
In December 2000, Evolution Beeson Gregory Limited (then known as Beeson Gregory
Limited) entered into a 15 year Partnership with the University of Oxford, the
first of its kind, and formed a separate company to manage this venture. In
August 2001, Beeson Gregory Group plc (subsequently acquired by The Evolution
Group plc in July 2002) made the decision to transfer this company to a separate
subsidiary company, IP2IPO Limited.
On Admission, it is expected that The Evolution Group plc will reduce its
holdings through the Placing such that it will hold less than 50 per cent. of
IP2IPO's enlarged issued share capital.
Under the terms of the Partnership with the University of Oxford's chemistry
department, IP2IPO Limited is entitled to 50 per cent. of the University of
Oxford's share in the equity of spin-out companies based around IP created at
the University of Oxford's chemistry department (after allocation of shares in
the spin-out company to its academic founders). IP2IPO Limited is also entitled
to 50 per cent. of the University of Oxford's share of the income derived from
the licensing of IP rising out of the University of Oxford's chemistry
department. The University of Oxford's chemistry department is the largest in
the western world and over the past 80 years, staff at the department have been
awarded 10 Nobel prizes. To date, IP2IPO Limited has an interest in the
following University of Oxford spin-out companies: Inhibox Limited, Pharminox
Limited, Zyentia Limited, Glycoform Limited, VASTox Limited and ReOx Limited.
In March 2002, IP2IPO Limited entered into a Partnership with the University of
Southampton (at least a 25 year deal) and the Group raised £3 million to enable
it to develop the relationship with the University of Southampton and for IP2IPO
Limited to meet its obligations under the Partnership. The University of
Southampton is one of the UK's top ten research universities employing some
2,410 academic staff. IP2IPO Limited has committed to invest £5 million seed
capital in spin-out companies based on IP created at the University of
Southampton.
IP2IPO Limited has received a 20 per cent. shareholding in Southampton Asset
Management Limited which is a company that has been set up to own the University
of Southampton's equity interests in spin-out companies (after allocation of
shares in the spin-out company to its academic founders). To date, the Group
has an interest in the following University of Southampton spin-out companies:
ACTIVEem Limited, Capsant Neurotechnologies Limited, Southampton PolyPeptides
Limited, Nanotecture Limited, HepCgenLimited, SynAIRgen Limited and Stratophase
Limited.
In May 2003, IP2IPO Limited entered into a Partnership with King's College
London (a 25 year deal) and the Group raised £6.25 million to enable it to
develop its relationship with King's College London and for IP2IPO Limited to
meet its obligations under the King's College Partnership. IP2IPO Limited has
committed to invest £5 million for seed capital in King's College London's
spin-out companies. In addition IP2IPO Limited is committed to making a
contribution of £250,000 to King's College London's patenting costs over 5
years. In return IP2IPO Limited is entitled to receive 20 per cent. of King's
College London's equity in spin-out companies (after allocation of shares in the
spin-out company to its academic founders) and 20 per cent. of King's College
London's income derived from out-licensing. King's College London is the fifth
ranked university in the UK for its research grant income and it is in the UK's
top five for generating earnings from research. King's College London's
research is dominated by the life sciences and it has the largest medical school
in the UK (comprising the King's, Guy's and St Thomas's teaching hospitals).
In September 2003, IP2IPO Limited entered into a new Partnership with the
University of York (a 25 year deal) which is conditional upon Admission. The
University of York Partnership relates to a new specialist research centre
within the University of York: the Centre for Novel Agricultural Products
("CNAP"). IP2IPO Limited will provide £1.15 million over 3 years to establish a
technology commercialisation company, Amaethon Limited, to commercialise CNAP's
IP. IP2IPO Limited will own one-third of Amaethon Limited and IP2IPO Limited
will also commit to invest up to £750,000 over 3 years in Amaethon Limited
spin-out companies based upon CNAP's IP, with a potential option to extend the
sum invested. CNAP, based in purpose built laboratories within a new £22
million building is part of the University of York's biology department. CNAP's
research objectives are based on using plants to develop novel industrial
products and its current research activities span biosensors, biocatalysts,
novel biomaterial such as surgical adhesives, the production of speciality
chemicals from plants and targets for novel herbicides.
Timetable
Admission Document Oct 2003
First Day Dealings Oct 2003
On plans for the flotation, Alex Snow, Chief Executive of Evolution commented:
"The flotation of IP2IPO is a major strategic step forward for Evolution as we
continue to focus on our core strengths of investment banking and retail fund
management. IP2IPO is a truly unique British asset with significant business
momentum and multiple growth opportunities. We look forward to sharing IP2IPO's
success with a wider group of investors."
On the plans for flotation, David Norwood, Chief Executive of IP2IPO said:
"The major UK universities have a reputation for world class research. The UK
has around 1 per cent. of the world's population but produces 8 per cent. of the
world's science papers. UK scientists receive, on average, about 10 per cent. of
internationally recognised science prizes and have won over 90 Nobel prizes.
Although IP developed by the UK's leading universities has led to the creation
of companies worth, in aggregate many billions of pounds, it is only relatively
recently that UK universities themselves have begun to assert ownership over and
to protect and otherwise commercialise their IP assets."
-Ends-
For further information:
The Evolution Group Plc 020 7071 4300
Alex Snow, Chief Executive
IP2IPO Group plc 01865 799 150
Dave Norwood, Chief Executive 020 7466 5000 (today)
Hogarth Partnership (PR advisers to Evolution) 020 7357 9477
Andrew Jaques / Georgina Briscoe
Buchanan Communications (PR advisers to IP2IPO) 020 7466 5000
Tim Anderson/Mark Court/Mary-Jane Johnson
This information is provided by RNS
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