8th Jun 2023 14:25
RUA Life Sciences PLC - Glasgow-based medical technology holding company focused on exploiting long-term implantable biostable polyurethane Elast-Eon - Completes reorganisation through "hive down" of vascular graft business to RUA Vascular Ltd and of heart valve business to RUA Structural Heart Ltd, both wholly owned subsidiaries. Company says having introduced segmental reporting, it believes separating business units out from parent's activities will benefit its financial control. Has now decided "to formalise the process" which RUA Life Sciences says will simplify regulatory transparency and increase funding options, alongside other benefits. Reorganisation included the transfer of all related assets including intellectual property. RUA also will recover costs attributable of GBP4.4 million for RUA Vascular and GBP3.1 million for RUA Structural heart. This will remain as an inter-company debt, resulting in a one-off trading profit of around GBP7.5 million for RUA Life Sciences. Company's shares previously jumped up yesterday after it predicted strong annual revenue growth.
Chair Bill Brown says: "This transaction is an important step in RUA's journey of exploiting the clinical and commercial value of Elast-Eon. Two businesses have been incubated within RUA each of which is building upon the platform technology. By setting the businesses up as subsidiaries, it increases transparency and allows a deeper understanding of the value creation process."
Current stock price: 42.32 pence, down 3.8% on Thursday in London
12-month change: up 2.0%
By Emma Curzon, Alliance News reporter
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