26th Sep 2019 14:33
(Alliance News) - Cash shell SalvaRx Group PLC said on Thursday it is considering various takeover opportunities as it posted a sharp swing to an interim profit.
Income totalled GBP64.5 million for the six months to June 30, comprising GBP11.4 million as a fair value gain on investments and GBP53.1 million as a realised gain on the disposal of an investment. No income was recorded in the prior period.
This helped the firm jump to a pretax profit of GBP61.3 million from a GBP190,000 loss a year ago.
In August 2018, the firm entered an agreement to sell its 94% stake in SalvaRx Ltd to Portage Biotech Inc, for USD67.5 million in Portage shares.
The disposal and demerger resulted in the divestment of "substantially all" of the company's existing business, assets and investments. As such, the company is now classified as a cash shell under AIM rules and must make a reverse takeover or seek re-admission as an investing company.
The company's shares were suspended in July as it had not identified a suitable acquisition, and it has until January 9, 2020 to find an acquisition, otherwise its shares will be suspended.
SalvaRx is evaluating a "number of potential acquisition opportunities" and will make a further announcement in due course.
By Lucy Heming; [email protected]
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