14th Jul 2006 12:03
IP Group PLC14 July 2006 PRESS RELEASE 14 July 2006 IP GROUP PLC AVACTA TO JOIN AIM VIA REVERSE TAKEOVER OF READYBUY IP Group plc (LSE: IPO) ("IP Group"), the intellectual propertycommercialisation company, is pleased to note that Avacta Ltd ("Avacta"), abio-detection and analysis spin-out from the University of Leeds, is to join AIMvia a reverse takeover of Readybuy plc (AIM: RBUY ) ("Readybuy"), the AIM quotedcash shell. On completion of the transaction, IP Group's holding in Avacta will total174,517,228 Ordinary Shares (worth £3.9 million at the placing price),representing 26.07% of the enlarged share capital. The proposed admission ofAvacta to AIM will generate a fair value gain of £3.5 million for IP Group. Readybuy has announced today that it has agreed, subject, inter alia, toexisting shareholder approval, to acquire the entire issued and to be issuedshare capital of Avacta in consideration of the issue of 500,000,000 newOrdinary Shares. Readybuy has also proposed to raise £1,012,500 (beforeexpenses) by means of a placing of 45,000,000 new Ordinary Shares at 2.25p pershare. These funds will be used to finance the development of Avacta and provideadditional working capital for the enlarged group. Avacta is a biophysics company with two core activities. Avacta operates aprofitable analytical services division, Avacta Analytical, where it providesanalytical services relating to the chemical and physical analysis of materialsto a range of companies principally in the pharmaceutical, healthcare andpersonal care sectors including Unilever R&D Port Sunlight and Domantis Ltd. Avacta's other core activity is the development of detection technologyplatforms where it is developing proprietary technologies for the rapiddetection and identification of biological and chemical hazards aimed atcustomers in homeland security and defence. Following the increasing prevalenceof international terrorism in recent years, homeland security has become a highpriority to many governments. The potential threat posed to public health bydiseases such as SARS and pandemic flu is also a concern within this market.Avacta is developing technologies to help combat these threats. In particular,Avacta is developing a 'remote hazard detection' application with the MoD. Thisapplication is intended to be vehicle mounted and is being primarily designed todetect chemicals, including weapons material, at distances of up to 20 metres.Laboratory trials of the proof-of-principle prototype device are currently underway. The technologies will also be applied to the biopharmaceutical and clinicaldiagnostics markets. In addition, Avacta is currently in advanced discussions with the UK governmentwith regard to a co-development project and with UCB's Celltech Antibody Centreof Excellence in relation to a collaboration funded by the Department of Tradeand Industry. Avacta is also in early stage discussions with a number of otherorganisations in respect of the formation of additional co-development projects. The acquisition of Avacta is classified as a reverse takeover under the AIMRules by virtue of its size and is conditional, inter alia, on the approval ofReadybuy shareholders. In view of the significance of the Acquisition, theDirectors of Readybuy have also proposed to change the name of Readybuy toAvacta Group plc. For further information about IP Group plc, please contact: IP Group plc 020 7489 5200Alan Aubrey, Chief Executive OfficerLiz Vaughan-Adams (communications) 0207 4895206/07979 853802 KBC Peel Hunt Ltd 020 7418 8900Megan Macintyre Buchanan Communications 020 7466 5000Mark Court, Tim Anderson, Mary-Jane Johnson Notes for Editors About IP Group IP Group Plc is an intellectual property (IP) commercialisation company thatspecialises in commercialising university technology. Founded in 2001, IP Grouplisted on AIM in October 2003 and moved to the Official List in June 2006. Ithas made two acquisitions to date - Techtran, a company set up to commercialiseuniversity intellectual property under a long term contract with the Universityof Leeds, in 2005 and Top Technology Ventures, an investment adviser to earlystage technology venture capital funds, in 2004. IP Group has formed long-term partnerships with seven universities - theUniversity of Oxford, King's College London, CNAP/University of York, theUniversity of Leeds, the University of Bristol, the University of Surrey and theUniversity of Southampton. As at 13 June 2006, 42 spin-out companies had been created among IP Group'suniversity partners. Of those, seven have listed on the AIM market of LondonStock Exchange plc and there has been one trade sale. For more information, please visit our website at www.ipgroupplc.com ENDS This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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