2nd Jan 2020 08:27
(Alliance News) - IP Group PLC on Thursday said portfolio company Oxford Nanopore Technologies Ltd received a total investment of GBP109.5 million from a capital raise and secondary sale of shares.
Shares in London-headquartered IP Group were up 4.5% at 74.21 pence in London in early morning trade.
Oxford Nanopore raised GBP29.3 million of new capital and also facilitated a secondary sale of GBP80.2 million of shares, giving a total investment of GBP109.5 million. IP Group, a developer of intellectual property-based businesses, is to realise GBP22.0 million in cash for the partial sale of its Oxford Nanopore holding under the secondary sale.
Once the transaction is complete, IP Group's stake in Oxford Nanopore will be 16% - falling from 18% at the end of June 2019 - with the 16% stake valued at around GBP264 million, according to IP Group.
The deal is expected to produce a GBP12 million fair value gain for IP Group compared to Oxford Nanopore's previous financing round in March 2018.
Overall, in 2019, IP Group's cash realisations exceeded GBP75 million, excluding the GBP22.0 million Oxford Nanopore one, versus just GBP30 million in 2018. As such, its gross cash resources at the end of December will be significantly higher than the GBP161 million June 30 figure, it said.
IP Group Chief Executive Alan Aubrey said: "We're delighted to see another successful fundraising for Oxford Nanopore which rounds off an impressive year of commercial success and technical validation of nanopore sequencing. IP Group has continued to focus attention this year on generating realisations from our maturing portfolio and we're pleased to report that cash exits in 2019 were more than double the amount recorded in 2018, leaving the business well-funded and well positioned for 2020."
By Anna Farley; [email protected]
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