23rd Dec 2015 07:41
LONDON (Alliance News) - EKF Diagnostics Holdings PLC Wednesday said it has agreed to sell its loss-making subsidiary Selah Genomics Inc to its co-founders, Michael Bolick and Jeremy Stuart, for a "nominal" value.
EKF said the business was disclosed in its balance sheet at a value of GBP41.4 million as the end of 2014, and this will now be written off.
Selah develops molecular diagnostics for personalised medicine. It was acquired by EKF for USD35.6 million, paid in shares, back in April 2014. The business reported a pretax loss of GBP2.6 million for the 11 months to end-November 2015.
EKF expects to save around GBP2 million annually from the sale of Selah in the future. In the event that Selah secures further funding within a year of the sale, EKF will obtain a 10% interest in Selah; if no funding its obtained and Selah or its business is sold, EKF will receive 10% of the net proceeds of any such sale.
"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," said Non-Executive Chairman Ron Zwanziger in a statement.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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