18th May 2007 07:01
IP Group PLC18 May 2007 FOR IMMEDIATE RELEASE 18 May 2007 IP GROUP TO INCREASE STAKE IN PHOTOPHARMICA IP Group plc (LSE: IPO) ("IP Group"), the intellectual propertycommercialisation company, is pleased to announce that it is increasing itsstake in Photopharmica Holdings Limited ("Photopharmica" or "the Company"), aUniversity of Leeds spin-out company. IP Group will pay a total consideration of£5.5 million to be satisfied as to £1 million in cash and £4.5 million by theissue of 3,237,410 new Ordinary Shares of 2 pence ("Ordinary Shares") (fullypaid ranking pari passu with the existing Ordinary Shares) in IP Groupcalculated at an issue price of 139 pence per share (being IP Group's averagemid-market Closing Price on the five dealing days prior to the date of thisannouncement). IP Group is acquiring debt instruments of approximately £5.0m in aggregate aswell as shares which will increase its equity stake to 56.6%, having previouslybeen beneficially interested in 4.3% of the Company. Photopharmica was established in 2001 to develop novel photosensitisers asproducts for medical use. The Company has opened up new applications of topicalphotodynamic therapy and produced photosensitisers that have improved propertiescompared with those previously available. Photopharmica's first clinical trialwas conducted in 2004 and further Phase II trials are being conducted andplanned. Photopharmica's Chief Executive Officer, John Lyon, has a track record ingrowing commercial life science businesses and, in particular, strong experiencein managing the drug development process. Mr Lyon held the position of GlobalVice President within a publicly quoted NYSE company and was the ManagingDirector of their world renowned clinic in Leeds, UK, through which manyapproved medicines have been developed. Application will be made for the new Ordinary Shares, which are subject to alock-in for six months following issue, to be admitted to the Official List andto be traded on London Stock Exchange plc's market for listed securities("Admission"). IP Group will also provide an additional £1.0 million toPhotopharmica at completion through additional debt. It is expected that Admission will become effective and that dealings willcommence in the 3,237,410 Ordinary Shares on 23 May 2007. Following Admission,the issued share capital of IP Group will be 250,291,965 Ordinary Shares. For further information, please contact: IP Group plc 020 7489 5200Alan Aubrey, Chief Executive OfficerLiz Vaughan-Adams (Communications) 020 7489 5206/07979853802 BuchananTim Anderson, Mary-Jane Johnson, Mark Court 020 7466 5000 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. The group has formed long-term partnerships with ten universities - theUniversity of Oxford, King's College London, CNAP/University of York, theUniversity of Leeds, the University of Bristol, the University of Surrey, theUniversity of Southampton, Queen Mary (University of London), the University ofBath and the University of Glasgow. As at 31 December 2006, 53 spin-out companies had been created among the group'suniversity partners. Of those, eight have listed on the AiM market of the LondonStock Exchange, one on PLUS Markets and there have been two trade sales. For more information, please visit our website at www.ipgroupplc.com. For moreinformation on Photopharmica, please visit its website at www.photopharmica.com. The University of Leeds The University of Leeds has a long history of successful entrepreneurialactivity based on leading edge research, generating more than 70 spin-outcompanies to date. In the last 18 months three University of Leeds companieshave floated on AIM. The White Rose Technology Seedcorn Fund An early stage investment in Photopharmica was made in 2002 by White RoseTechnology Seedcorn Fund, which is owned by the Universities of York, Leeds andSheffield and managed by Aberdeen Asset Managers. The White Rose Technology Seedcorn Fund is an early stage seedcorn fund, whichinvests in exciting new technology emerging from the universities of York, Leedsand Sheffield. The £9 million Fund provides venture capital funding of up to£250,000 (and above for exceptional opportunities) to enable the transition frompromising research work to commercial reality. ENDS This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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