Intercytex Group plc (LSE: ICX) (“Intercytex” or “the Company”) today announces that it has completed the sale of certain assets related to stem cell therapies from its wholly owned subsidiary Axordia Limited to Pfizer Limited for a total cash consideration of $750,000. £75,000 will be held in escrow until 1 May 2010, with the remainder being paid immediately upon completion.
Detailed discussions regarding the sale of other business assets are continuing and the Company anticipates making further announcements in due course. The proceeds from the sale of Axordia’s assets will be used to support ongoing operational costs and working capital requirements of the Company as these discussions continue.
In order to reduce costs, the Company has closed its offices in Cambridge, UK and Woburn, MA, and reduced its workforce to the three Executive Directors (Nick Higgins, Paul Kemp and Max Herrmann). All three Directors have been put on notice and it is anticipated that their employment with the Company will end once the divestment process is complete, which is expected to be by the end of the year.
The combined impact of the realised consideration from Axordia, anticipated further receipts from the sale of other assets and the cost reduction measures outlined above will extend Intercytex’ cash resources into 2010.
As a result of the ongoing divestment process, the Company is not in a position to announce interim financial results for the six months to June 30, 2009.
About Axordia Limited
Axordia Limited is focused on the development of stem cell therapies for human diseases. As at 31 December 2008, the net book value of the assets attributable to Axordia Limited was £1.68 million, of which £1.73 million was goodwill. Axordia Limited reported a loss of £0.2 million for the financial year ended 31 July 2008.
Statements contained within this press release may contain forward-looking information or statements with respect to the financial condition, results of operations and business achievements/performance of Intercytex and certain of the plans and objectives of management of Intercytex with respect thereto. By their nature, forward-looking statements involve risks and uncertainties that may cause actual results to vary from those contained in the forward-looking statements. In some cases, you can identify such forward-looking statements by terminology such as ‘may’, ‘will’, ‘could’, ‘forecasts’, ‘expects’, ‘plans’, ‘anticipates’, ‘believes’, ‘estimates’, ‘predicts’, ‘potential’, ‘continue’ or similar expressions. A number of factors, including the satisfactory progress of research and development, could cause Intercytex’ actual financial condition, results of operations and business achievements/performance to differ materially from the estimates made or implied in such forward-looking statements and, accordingly, reliance should not be placed on such statements. Forward projections reflect management’s best estimates based on information available at the time of issue and are not a guarantee of future performance. Other than as required by applicable law, Intercytex does not undertake any obligation to update or revise any forward-looking information or statements to reflect events or circumstances after the date of this release.
