3rd May 2016 11:17
LONDON (Alliance News) - Feedback PLC, the medical imaging software company, on Tuesday said it agreed to sell its 50% stake in Stone Checker Software Ltd for GBP46,000 in cash.
The Stone Checker business is being sold to Free Association Books Ltd, a company connected to one of Feedback's non-executive directors, Trevor Brown, who is also a substantial shareholder in Feedback, with a 27% stake.
Feedback invested GBP1,000 in Stone Checker in July 2015 and subsequently licensed its TexRAD software to Stone Checker for exclusive use in relation to kidney stones. The sale of the equity interest in Stone Checker will generate a profit of GBP45,000 before expenses.
In September 2015, Feedback announced the intention to develop a product incorporating TexRAD for kidney stones. The aim is to develop a composite risk stratification software product incorporating TexRAD CT texture analysis with other known clinical markers.
According to Feedback, the integrated product could potentially assist urologists and radiologists to provide better patient management and treatment decisions.
Stone Checker is making "good progress" and is reaching the stage where it will require "substantial" additional investment, Feedback said.
Feedback has already said it's committing significant resources in developing a lung cancer stratification tool in conjunction with Alliance Medical Group.
Although urolithiasis could be an "exciting" application for TexRAD, Feedback said it should should focus investment in TexRAD's use in oncology.
Feedback will continue to receive royalty and licence payments in the event Stone Checker achieves commercial success. The sale proceeds will be used by Feedback for general corporate purposes.
Stone Checker does not yet make revenue. It made a pretax loss for the period ending February 29 of GBP154.
Shares in Feedback were untraded on Tuesday, having last traded at 1.38 pence.
By Samuel Agini; [email protected]; @samuelagini
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