Business
Sale of Minority Interest in Alkalon
Sale of Minority Interest in Alkalon.
About this update from Itaconix Plc
[{"type":"text","content":"\n \nRNS Number : 3916A Itaconix PLC 29 May 2019 \n\n29 May 2019 \nItaconix plc (\"Itaconix\" or \"the Company\")\nSale of Minority Interest in Alkalon\nItaconix (AIM: ITX), a leading innovator in sustainable specialty polymers, announces the sale of its holdings in Alkalon A/S (\"Alkalon\"), a privately-held Danish nicotine gum company. The Company's holdings in Alkalon were purchased for cash by Helmich Invest ApS, Nolta ApS, Solco ApS, and Commerce Pharma Holding ApS, who are existing shareholders in Alkalon. The total cash consideration was c. DKK 2.0 million, equivalent to c. £242,000. The proceeds consisted of c. £194,000 for the Company's minority equity interest in Alkalon and c. £48,000 for the full principal and accrued interest of a shareholder loan.\nFollowing impairments for fair value in 2016 and 2017, the book values for Alkalon in Itaconix's unaudited management accounts at 31 December 2018 were £46,000 for the minority equity interest in Alkalon and £30,000 for the shareholder loan and its accrued interest. \nItaconix held 22.49% of Alkalon's ordinary shares. The Company recognised a profit of c.£5,000 for its share of Alkalon's profits in its unaudited management accounts for the year ended 31 December 2018 and a loss of c.£214,000 for the year ended 31 December 2017. \nAs announced in 2016, Itaconix divested its nicotine gum business in return for an initial 15% equity holding in Alkalon. Subsequent shares from commercial milestones and minority participation in equity and debt fu...