EKF Diagnostics Holdings PLC Sale of Selah (9616J)
December 23 2015 - 2:00AM
UK Regulatory
TIDMEKF
RNS Number : 9616J
EKF Diagnostics Holdings PLC
23 December 2015
23 December 2015
EKF Diagnostics Holdings plc
("EKF" or the "Company")
Sale of Selah
EKF Diagnostics Holdings plc (AIM: EKF) to announces that it has
reached agreement to sell its wholly owned subsidiary Selah
Genomics, Inc ("Selah"), a US based developer of molecular
diagnostics for personalised medicine, to the co-founders, Michael
Bolick and Jeremy Stuart (the "Purchasers").
The consideration for the acquisition of Selah by EKF was
US$35.6 million paid in shares on 17 April 2014. Selah reported a
loss after tax for the period from acquisition to 31 December 2014
of GBP0.6 million and has unaudited loss after tax for the period
from 1 January 2015 to 30 November 2015 of GBP2.6 million. As at 31
December 2014 Selah was disclosed in the Company's balance sheet in
intangible assets at a value of GBP41.4 million, which will now be
written off. Selah as at 31 December 2014 had net liabilities of
GBP3.6 million.
The Board estimate the future annual cost saving to EKF will be
in the region of GBP2 million. The consideration paid by the
Purchasers is nominal. The sale and purchase agreement with the
Purchasers contains additional consideration provisions in favour
of EKF. In the event that Selah secures further equity funding
within twelve months from today's date, EKF will obtain a 10%
equity interest in Selah. Alternatively if no external funding is
obtained and if Selah or its business are sold, EKF will receive
10% of the net proceeds of such a sale.
Michael Bolick as a director of Selah is a related parties of
the Company therefore the sale of Selah constitutes a related party
transaction. EKF's Directors consider, having consulted with its
nominated adviser, that the terms of the transaction are fair and
reasonable insofar as its shareholders are concerned.
Ron Zwanziger, Non-Executive Chairman, commented:
"Today's sale of Selah, with the associated cost savings, is
another step towards re-establishing EKF as a profitable,
cash-generating point-of-care diagnostics business."
EKF Diagnostics Holdings Tel: 029 2071 0570
plc
Ron Zwanziger, Non-Executive Tel: +1 339 221 6282
Chairman
Julian Baines, CEO Mob: 07788 420 859
Panmure Gordon (UK) Tel: 020 7886 2500
Limited
Robert Naylor (Corporate
Finance)
Paul Fincham (Corporate
Finance)
Walbrook PR Limited Tel: 020 7933 8780 or ekf@walbrookpr.com
Paul McManus Mob: 07980 541 893
Lianne Cawthorne Mob: 07584 391 303
This information is provided by RNS
The company news service from the London Stock Exchange
END
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