23rd Mar 2005 10:46
IP2IPO Group PLC23 March 2005 For immediate release 23rd March 2005 IP2IPO Group plc Strategic Investment in Sigma Technology Group Plc IP2IPO Group plc ("IP2IPO" or the "Company") (AIM: IPO), the intellectualproperty company that commercialises university technology, is pleased toannounce it has subscribed for new shares equivalent to 5% of the issuedordinary share capital of Sigma Technology Group Plc ("Sigma") (AIM: SGM), thetechnology venture capital and advisory specialist, at a price of 20 pence pershare (the "Investment"). The total consideration for the Investment is£360,935. As part of the Investment, IP2IPO will enter into a collaboration with Sigma,with the objective of supporting Sigma's efforts to develop IP commercialisationpartnerships with Scottish universities. In addition to the Investment, Sigma has granted IP2IPO an option to subscribefor further new ordinary shares at a price of 40 pence per share (the "Option"). Exercise of the Option would entitle IP2IPO to subscribe for an additional5,414,030 new ordinary shares, representing 15% of Sigma's current issued sharecapital for a total exercise cost of £2,165,612. The option can be exercised atany time until 30th June 2006, the initial period of the collaboration, and issubject to Sigma obtaining the necessary shareholder approvals. Information on Sigma Sigma is a technology fund management and advisory specialist with a strongScottish presence, based in Edinburgh. Sigma manages two venture funds, theSigma Innovation Fund and the Sigma Technology Venture Fund, which total £23million. Both funds have Scottish-based investors including the Bank ofScotland, Scottish Widows Investment Partnership and Scottish Enterprise Fife.Sigma is also a partner with the Scottish Co-investment Fund which providesfunding alongside the Sigma Technology Venture Fund. Sigma's current investmentportfolio contains 10 Scottish companies. Reasons for the investment IP2IPO's investment achieves a number of objectives: • IP2IPO recognises the opportunity to apply its model in Scotland. The Investment gives IP2IPO a strategic stake in a company with an established Scottish presence and substantial experience in making early stage investments in Scottish enterprise. • Sigma's existing funds under management represent a potential source of early stage capital for companies within the IP2IPO portfolio. • Sigma's focus is on investing in early stage technology companies. The Investment will allow IP2IPO to collaborate closely with a group that shares IP2IPO's commitment to building IP-based companies. Commenting on today's announcement, David Norwood, Chief Executive Officer ofIP2IPO, said: "This investment gives IP2IPO the opportunity to expand our modelinto Scotland. Scottish universities contain some of the leading science in theUK and, together with Sigma, we can offer them a compelling package of acommitted local team and expertise in university IP commercialisation." Neil Crabb, Joint Managing Director of Sigma Technology Group plc, said: "We aredelighted to be able to announce this agreement with IP2IPO which willstrengthen our ability to develop partnerships with Scottish Universities, someof which rank amongst the best in the UK for technological development. We arealready successful in the Scottish market and this provides us with theopportunity to further that success." For more information please contact: IP2IPODavid Norwood, Chief Executive Officer 020 7067 1651 Buchanan CommunicationsTim Anderson, Mark Court, Mary-Jane Johnson 020 7466 5000 SigmaNeil Crabb, Joint Managing Director 020 7653 3200 Notes for editors About IP2IPO IP2IPO is an intellectual property (IP) company that specialises incommercialising university technology. The Company was founded in 2001 andlisted on AIM in October 2003. IP2IPO's first partnership was with theUniversity of Oxford. In return for an investment of £20 million, IP2IPO hasacquired 50 per cent of the University of Oxford's equity in spin-out companiesand technology licenses based on intellectual property created at the ChemistryDepartment until 2015. In November 2003, IP2IPO created a £5 million seedcapital fund for investing in spin-out companies across the University ofOxford, not just those originating within the Chemistry Department. In March 2002, IP2IPO entered into a second long-term partnership with theUniversity of Southampton. Under the terms of this partnership, IP2IPO iscommitted to working with the University of Southampton in the identificationand facilitation of spin-out companies from across the University of Southamptonand to investing £5 million in early-stage University of Southampton spin-outcompanies over a four year period in return for equity stakes in thosecompanies. In addition, IP2IPO also received a 20 per cent stake in SouthamptonAsset Management Limited, a company that has been formed to hold theUniversity's equity stakes in its future spin-out companies. The partnership hasa term of at least 25 years. IP2IPO entered into its third long-term partnership in May 2003 with King'sCollege London. IP2IPO will work with King's College London to help identify andprogress commercialisation opportunities as well as invest £5 million in seedcapital in spin-out companies from King's College London over a five year periodin return for equity stakes in those companies. In addition, IP2IPO will receive20 per cent of King's College London's equity in spin-out companies andtechnology licenses. The partnership has an initial term of 25 years. In October 2003, IP2IPO announced a fourth partnership with the Centre for NovelAgricultural Products ("CNAP"), based at the University of York. CNAP is aflagship research centre that specialises in plant and microbial gene discovery.Under the terms of the partnership a new company, Amaethon Limited, has beencreated which has the right to commercialise CNAP's IP for 25 years. IP2IPO hascommitted to invest £1.15m in Amaethon Limited in return for a one third equitystake in Amaethon Limited (the remaining equity being owned by the University ofYork) and will also invest in the spin-out companies based on CNAP's IP whichAmaethon Limited creates. In June 2004, IP2IPO acquired Top Technology Ventures Limited, an investmentadviser to early stage technology funds. This combines IP2IPO's expertise in thecreation of new ventures based on world leading university IP with TopTechnology's focus on making early stage venture capital investments. In January 2005, IP2IPO acquired Techtran, a company set up in 2002 tocommercialise university intellectual property under a long-term technologycommercialisation contract with the University of Leeds. Under the terms of thecontract Techtran receives a significant (30%) interest in spin-out companiescreated and technology licences negotiated, in return for the provision oftechnology transfer services to the University. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Ip GroupSGM.L