11th May 2006 16:35
IP Group PLC11 May 2006 For immediate release 11 May 2006 IP GROUP PLC ("IP Group" or "the Company") Launch of 5% Placing IP Group plc (AIM: IPO), formerly IP2IPO Group plc, is pleased to announce thelaunch of a Placing of up to 11,452,650 new ordinary shares of 2 pence each (the"Placing Shares") for cash with institutional investors, representing a maximumof 5 per cent. of the current issued share capital of the Company (the "Placing"). Further details of the Placing will be announced in due course. The proceeds of the Placing will be used primarily to finance the entry intofurther long-term partnerships with leading research universities with which theCompany is already in discussions. The Placing Shares are being placed by Lehman Brothers International (Europe),as sole bookrunner, and KBC Peel Hunt Ltd, as joint lead manager, and are beingplaced conditional on admission to trading on the AIM Market of London StockExchange plc ("Admission"). Application has been made for Admission of thePlacing Shares and it is expected that Admission will become effective anddealings in the Placing Shares will commence by 17 May 2006. The Placing Sharesto be allotted will be credited as fully paid and will rank pari passu in allrespects with the Company's existing ordinary shares of 2p each, including theright to receive all dividends and distributions declared, made or paid on orafter the date of their allotment. Alan Aubrey, Chief Executive Officer, commented: "We believe that the Company iswell positioned to exploit the expertise and market position that it has gainedfrom working with its existing university partners to establish furtherpartnerships with additional leading universities in the UK. We are intending topartner with universities with sufficient breadth and depth of research and theright innovative culture to build a diversified portfolio of high growth spinout companies over the lifetime of a partnership." Lehman Brothers International (Europe) and KBC Peel Hunt Ltd are each actingexclusively for IP Group and are not acting on behalf of any other person andwill not be responsible to any person, other than IP Group, for providing theprotections afforded to their respective clients or for advising any such personin connection with the Placing. For more information please contact: IP GroupAlan Aubrey, Chief Executive Officer 020 7489 5200 Buchanan CommunicationsTim Anderson, Mark Court 020 7466 5000 Lehman Brothers International (Europe)Stephen Pull, Mark Hutt 020 7102 1000 KBC Peel Hunt LtdMegan MacIntyre 020 7418 8900 Notes for editors About IP Group plc IP Group is an intellectual property (IP) company that specialises incommercialising university technology. The Company was founded in 2001 andlisted on the AIM Market of the London Stock Exchange plc in October 2003. IPGroup's first partnership was with the University of Oxford. In return for aninvestment of £20 million, IP Group has acquired 50 per cent of the Universityof Oxford's equity in spin-out companies and technology licenses based onintellectual property created at the Chemistry Department until 2015. InNovember 2003, IP Group created a £5 million seed capital fund for investing inspin-out companies across the University of Oxford, not just those originatingwithin the Chemistry Department. In March 2002, IP Group entered into a second long-term partnership with theUniversity of Southampton. Under the terms of this partnership, IP Group 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, IP Group also received a 20 per cent stake inSouthampton Asset Management Limited, a company that has been formed to hold theUniversity's equity stakes in its spin-out companies. The partnership has a termof at least 25 years. IP Group entered into its third long-term partnership in May 2003 with King'sCollege London. IP Group works 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, IP Group receives20 per cent of King's College London's equity in spin-out companies andtechnology licenses. The partnership has a term of 25 years. In October 2003, IP Group announced a fourth partnership with the Centre forNovel Agricultural 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. IP Grouphas invested £1.15m in Amaethon Limited in return for a 40 per cent. 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, IP Group acquired Top Technology Ventures Limited, an investmentadviser to early stage technology funds. This combines IP Group's expertise inthe creation of new ventures based on world leading university IP with TopTechnology's focus on making early stage venture capital investments. In January 2005, IP Group 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 per cent.) interest in spin-outcompanies created and technology licences negotiated, in return for theprovision of technology transfer services to the University. In May 2005, IP Group announced the launch of Modern Biosciences, which willin-license life science intellectual property created by medical researchers atuniversities with which IP Group already has partnerships, other universities inthe UK and similar academic and charitable research institutions. ModernBiosciences' objective is to further develop the intellectual property which itin-licenses with a view to creating substantial value either by subsequentlylicensing these development programmes to the pharmaceutical industry or via thecreation of new ventures. In December 2005, IP Group entered into its sixth long-term partnership with theUniversity of Bristol. IP Group will work with the University of Bristol to helpidentify and progress commercialisation opportunities as well as invest aninitial £5 million in seed capital in spin-out companies from the University ofBristol over a five year period in return for equity stakes in those companies.In return, IP Group will receive 13.3 per cent of equity spin-out companies fromthe University of Bristol at the time that the spin-out company is establishedprior to investment. The partnership has a term of 25 years. In February 2006, IP Group entered into its seventh long-term partnership withthe University of Surrey. IP Group will work with the University of Surrey tohelp identify and progress commercialisation opportunities as well as invest aninitial fund of up to £5 million in seed capital in spin-out companies from theUniversity of Surrey in return for equity stakes in those companies. Inaddition, IP Group will receive 13.3% per cent of in spin-out companies at thetime that the company is established prior to investment. The partnership has aterm of 25 years. In March 2006, IP Group entered into an exclusive long-term partnership with theUniversity of York. The partnership is in addition to IP Group's currentpartnership with the Centre for Novel Agricultural Products, IP Group will workwith the University of York to help identify and progress commercialisationopportunities as well as invest an initial fund of £5 million in seed capital inspin-out companies from the University of York in return for equity stakes inthose companies. In addition, IP Group will receive 25% of the equity in anyspin-out company from the University at the time that the company isestablished, prior to investment, if IP Group invests in the company from thefund and 15% of the equity if it does not invest from the Fund. IP Group willalso receive 10% of any income which the University of York receives fromlicencing during the lifetime of the partnership. The partnership has a term of25 years. To date, 7 spin-out companies from the IP Group portfolio have listed on the AIMMarket of London Stock Exchange plc: Offshore Hydrocarbon Mapping plc, Synairgenplc, VASTox plc, Proximagen Neuroscience plc, GETECH Group plc, Syntopix Groupplc and Oxford Catalysts Group plc. There has been one trade sale: ToumazTechnology Limited was sold to Nanoscience Inc. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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