Business
Acquisition
Acquisition.
About this update from Avacta Group Plc
[{"type":"text","content":"\n RNS Number : 9817H Avacta Group PLC 03 March 2010 \n \n\n \nAvacta Group plc\n \nAcquisition of Veterinary Diagnostics Company\n \nAcute Phase Protein Tests Expands Avacta Animal Health Offering\n \nAvacta Group plc (\"Avacta\" or the \"Company\"), which provides innovative high value technologies and services to the pharmaceutical and diagnostics markets, is pleased to announce the acquisition of Reactivlab Limited (\"Reactivlab\") for an initial consideration of £80,000, comprised of 4,432,133 Ordinary Shares and two deferred consideration elements which are dependent on annual sales volumes in the second and third years following completion. Reactivlab has developed a range of veterinary diagnostic tests with broad applicability in animal health and therefore complementary to the Company's existing activities. \n \n The Initial Consideration of £80,000 comprises of 4,432,133 Ordinary Shares of 0.1 pence each. The Deferred Consideration elements are payable on the second and third anniversary of completion and are calculated as being 30% and 100% of directly attributable revenues for the second and third years respectively. The deferred consideration is payable in Ordinary Shares to be issued at the prevailing market price at the time of issue, subject to a minimum issue price of 1.5p. The maximum aggregate consideration payable has been capped at £5 million.\n \nReactivlab's last reported statutory accounts were made up to 31 July 2009 and in which revenues for the year were £142,079, pre tax losses £142,596 and the closing net assets were £117,526. The company's December management accounts show a closing cash balance of c. £83,000.\n \nReactivlab was spun out of the University of Glasgow's world leading Veterinary School by its founder Professor David Eckersall to develop Acute-Phase Protein (\"APP\") tests for veterinary healthcare. APPs are a class of proteins whose concentrations in the blood change as part of the immune and inflammatory response to a wide range of problems such as infections, diabetes, hypertension and cardiovascular disease. They have widespread utility in veterinary diagnostics and are highly complementary to the current diagnostic offering from Avacta Animal Health. \n \nIn human health, the monitoring of APPs (partic...