Business
Proposed acquisition
Proposed acquisition.
About this update from Roadside Real Estate Plc
[{"type":"text","content":"\n \n \n RNS Number : 7702E\n Barkby Group PLC (The)\n 03 March 2020\n \n \n \n \n The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 (\"MAR\"). With the publication of this announcement via a Regulatory Information Service, this inside information is now considered to be in the public domain.\n \n \n 3 March 2020\n \n \n The Barkby Group PLC\n \n \n (\"Barkby\" or the \"Group\")\n \n \n Proposed acquisition of Cambridge Sound Technologies\n \n \n Barkby Life Sciences, a division of The Barkby Group PLC, the diversified business group, is pleased to announce that it has signed exclusive, non-binding heads of terms to acquire the intellectual property of Cambridge Sound Technologies and associated parties (\"the Acquisition\"), a privately-owned developer of advanced sleep technology products. Barkby will subsequently own 75.1% of the acquiring entity, with the remaining shares held by the two founders, who will remain involved in the business. \n \n \n Cambridge Sound Technologies is the creator of a patented[1] product which uses audio technology to help the brain reset its natural sleeping cycle. Rather than just masking sleep issues, the product targets the underlying principal causes of insomnia and poor sleep patterns that can lead to a range of health problems, including poor mental health, heart disease, diabetes, stroke and weakening of the immune system. In testing, 92% of participants reported a 'significant improvement' to their sleep-related disorders and the average number of hours slept increased 62% over a three-week period from the first night of testing to the last night[2]. \n \n \n Cambridge Sound Technologies is expected to begin commercial production of the product in Q2 2020 with first commercial deliveries expected in Q3 2020. The product has received significant interest from global retailers and distributers. \n \n \n The consideration for the intellectual property of Cambridge Sound Technologies comprises initial cash consideration of £0.75m and a deferred consideration payable in cash in a number of tranches over 5 years up to £5.25m, conditional upon certain performance criteria having been met. As part of the Acquisition Barkby expects to invest a total of £1.5m of workin...