Business
Volition - update
Volition - update.
About this update from Valirx Plc
[{"type":"text","content":"\n \nRNS Number : 2049I ValiRx PLC 10 June 2011 \n \n\n \n \n10 June 2011\nValiRx Plc\n(\"ValiRx\" or the \"Company\")\n \nVolition - update\n \n\"ValiRx derives value from transfer of a patent application that is outside of its core technologies to Volition\"\n \nValiRx (AIM: VAL), a life science company with a focus on cancer diagnostics and therapeutics for personalised medicine, announces that, further to the notifications made on 23 September 2010 and 11 October 2010, the Company has agreed to vary certain terms of the sale and purchase agreement (\"Agreement\") between Singapore Volition Pte. Limited and the Company in relation to the sale of the Company's former subsidiary ValiBIO SA and the sublicence of the Company's rights to hypergenomics technology that was associated with the sale.\n \nThe original Agreement provided for the payment to the Company of US$400,000 in installments and of the issue to the Company of US$600,000 of ordinary shares in Volition to the Company and the repayment to the Company of certain expenses.\n \nIn consideration of a commitment by Volition to the Company to issue a further US$510,000 of ordinary shares in Volition (so now taking the aggregate value to US$1.11m), the Company has agreed to:\n(a) transfer its rights to a patent application for certain diagnostic applications for an endometriosis device; and\n(b) novate the rights of a patent licence concerning hypergenomics technology to Volition, the rights were originally provided to Volition by way of a sublicence.\n \nThe novation is subject to a \"back-licence\" to ValiRx's wholly-owned subsidiary, ValiPharma for the use by ValiPharma of hypergenomics technology in connection with ValiRx's GeneIce and ARP technologies.\n \nThe board of ValiRx considers the endometriosis patent application as being outside ValiRx's core technologies and the replacement of the sublicence by a novation of the hypergenomics technology does not have a material commercial impact on the Company.\n \nThe issue of US$1.11m worth of shares by Volition will take place on the earlier to occur of an initial public offering by Volition, or 7 October 2011 at a valuation by reference to the Volition IPO price or, if there has been no IPO, to the average subscription price between September...