28th Apr 2020 16:04
(Alliance News) - Renalytix AI PLC on Tuesday said it will now take the "necessary preliminary steps" needed to demerge its FractalDx unit.
Back in March, the clinical diagnostics company said it was mulling a potential spin-out and subsequent AIM stock listing for the unit, which is focused on developing technology to detect acute transplant rejection in patients who have received a kidney transplant.
Renalytix said on Tuesday: "The board has now determined to take the necessary preliminary steps in preparation for a potential spin-out, including the incorporation of a new subsidiary, Verici Dx Ltd. The company has decided to proceed in obtaining the approval necessary for the capital reduction which is required to implement the demerger.
"Having considered these plans in further detail, the board has decided that a spin-out and admission to AIM of FractalDx may provide the opportunity to secure separate financial resources for the FractalDx portfolio, with the goal of enabling accelerated development of FractalDx products and achievement of commercial milestones."
The company will pursue a capital reduction.
"Notwithstanding that the necessary approval for the capital reduction is being sought, these considerations remain at an early stage and there can be no guarantee that the demerger will be completed. The approval of the capital reduction enables the board to declare distribution in specie of Verici Dx shares to existing RenalytixAI shareholders. Further announcements will be made at the appropriate time," Renalytix said.
Shares in the company were 3.0% higher at 278.00 pence each in London on Tuesday afternoon.
By Eric Cunha; [email protected]
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