Business
Sale of Innovenn & Notice of General Meeting
Sale of Innovenn & Notice of General Meeting.
About this update from Hvivo Plc
[{"type":"text","content":"\n \nRNS Number : 5712L Venn Life Sciences Holdings PLC 04 October 2016 \n\nVenn Life Sciences Holdings Plc\n(\"Venn Life Sciences\" or the \"Company\" or the \"Group\")\n \nSale of Innovenn UK Limited\n& Notice of General Meeting\n \nVenn Life Sciences (AIM: VENN), a growing Contract Research Organisation providing drug development, clinical trial management and resourcing solutions to pharmaceutical, biotechnology and medical device clients, announces that its wholly owned subsidiary, Venn Life Sciences Limited, has entered into a conditional agreement under which it and Lynchwood Nominees Limited, as custodian for the Helium Rising Stars Fund, would sell the entire issued share capital of Innovenn UK Limited for a total consideration of up to £4,740,000.\n \nOverview\n \nInformation on Innovenn\n \nInnovenn was founded by Venn in 2014 as an innovation vehicle dedicated to the development and marketing of healthcare products and technologies. The business acquired Labskin, a living skin model, and an anti-acne formulation and since acquisition has invested in the further development and commercialisation of these assets. \n \nPrior to the Sale, the Subsidiary has converted its loan to Innovenn of £1,294,491 into ordinary shares of £0.001 each of Innovenn, increasing its shareholding to 70% of the issued share capital of Innovenn. The other shareholder of Innovenn is the Helium Rising Stars Fund. The Helium Rising Stars Fund is a Cayman-domiciled fund that invests in small UK companies. The fund is managed by ISPartners, a hedge fund manager based in Zurich. The fund is co-managed by David Newton and Christian Benz.\n \nWithin the Company's consolidated accounts for the financial year 2015, the Innovenn division reported a loss before tax of £385,000 and had net liabilities of £121,000. Based on the position as at 31st December 2015, the terms described above would crystalise a gain on disposal in the Company's consolidated accounts of approximately £959,000. Post the sale Innovenn will fund its activities from existing cash resources and a €1m 5 year bank loan which is currently guaranteed by Venn (the \"Guarantee\"). The provision of the Guarantee is a related party transaction as defined in the AIM Rules and the ESM Rules. Subject to bank approval it is intended ...