2nd Jul 2007 07:00
Provexis PLC02 July 2007 For release at 07.00 Monday July 2nd 2007 PROVEXIS plc ("Provexis" or the "Company") CLOSURE OF SIRCO JUICE BRAND Provexis plc (PXS.L), the nutraceutical company that developsscientifically-proven functional and medical foods, announces that, further tothe preliminary results announcement on 30 May 2007, the Company has undertakena strategic review of its Sirco(R) juice brand. In order to facilitate thenegotiation of exclusive rights for potential license partners, the Company isgoing to cease production and supply of Sirco(R) with immediate effect. Sirco(R)is currently distributed in approximately 1,900 major multiple grocers and highstreet retailers. There are no financial write-offs related to the closure. Provexis is in the process of repositioning itself as a pure discovery,development and licensing business and this closure is a key part of theimplementation phase. The Sirco(R) brand has met its aims in raising awarenessof the Company's patented, scientifically-proven Fruitflow(R) heart-healthtechnology with global food and beverage brand owners and has demonstratedconsumer demand for the technology, as well as underpinning the implementationof its regulatory and health claims strategy. There are four sectors in which Provexis is seeking major partnerships, namely,food and dairy, juice and juice drinks, products for deep vein thrombosis, anddietary supplements and medical products. On 30 March 2007, the Companyannounced a collaboration with Unilever for certain formats within the food anddairy sector. Provexis is currently in discussions with two major global beverage brand ownersregarding potential license arrangements for Fruitflow(R) in juice and juicedrinks and these companies require extensive, exclusive geographical rights,which the closure of Sirco(R) will facilitate. The Company hopes that thesediscussions will reach a satisfactory conclusion in due course. Stephen Moon, Chief Executive Officer of Provexis plc, commented: "After examining other possible exit options, it was felt that the long-termpotential of licensing to a major brand owner would deliver higher shareholdervalue. We have carefully planned this step and there are no write-offsassociated with it. This completes our programme of structural change and I ampleased to say we have significantly reduced our monthly cash burn." -ends- For further information please contact: Stephen Moon, Chief ExecutiveProvexis plc Tel: 020 8392 6631 Tom Griffiths/Alasdair Younie Tel: 020 7012 2000Arbuthnot Securities Chris SteeleAdventis Financial PR Tel: 020 7034 4759 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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