Orderly wind up of Wanda and Vortex
("NetScientific" or the "Company")
Orderly wind up of Wanda and Vortex
Further to its announcement and circular to shareholders ("Circular") on 15 February 2019, NetScientific plc (AIM: NSCI) announces that the directors of each of Vortex Biosciences ("Vortex") and Wanda, Inc. ("Wanda"), which are Portfolio Companies of NetScientific, have resolved to effect the orderly wind up of those respective companies.
In the Circular, NetScientific had stated that it would allocate the Company's remaining cash to managing its stakes in those Portfolio Companies which the Board believed provided the most realistic prospects of delivering Shareholder returns within the anticipated lifespan of the Company. At that stage, the Board believed those Portfolio Companies would be Glycotest, Inc. ("Glycotest"), ProAxsis Ltd ("ProAxsis") and PDS BioTechnology ("PDS").
Absent viable additional funding, the Board continues to believe that Glycotest, ProAxsis and PDS provide the most realistic prospects of delivering Shareholder returns within the anticipated lifespan of the Company. Accordingly, having reviewed and considered the cash position of the Company, and any potential additional funding options available to the Company, the Board resolved that it was not in a position to continue to provide financial support to Vortex and Wanda without prejudicing its ability to allocate sufficient cash resources to Glycotest, ProAxsis and PDS.
The Company has received an indicative proposal from a third party regarding the sale of the Company's shareholdings in Wanda and Vortex (the "Potential Disposal"). Having considered the indicative terms of, and taking account of the anticipated timeline to complete and the execution risks of, the Potential Disposal, the Board believes that the level of consideration offered is not sufficient to justify the Company continuing to provide the necessary financial support to Wanda and Vortex whilst due diligence and negotiations regarding the terms of the Potential Disposal are undertaken, without prejudicing the Company's ability to allocate sufficient cash resources to Glycotest, ProAxsis and PDS. The Board has therefore concluded that it was not in the best interests of the Company to proceed with the Potential Disposal.
Subsequently, the directors of Vortex and Wanda respectively resolved to effect the orderly wind up of those companies.
Capitalised terms used in this announcement have the meanings given to them in the Circular sent to Shareholders on 15 February 2019.
The Company anticipates releasing another announcement regarding another Portfolio Company shortly.
For more information, please contact:
François R. Martelet, M.D., CEO
Ian Postlethwaite, CFO
Tel: +44 (0)20 3514 1800
WH Ireland Limited (NOMAD, Financial Adviser and Broker)
Chris Fielding / Jessica Cave
Tel: +44 (0)20 7220 1666
Consilium Strategic Communications
Mary-Jane Elliott / Chris Welsh / Laura Thornton
Tel: +44 (0)20 3709 5700
NetScientific is a transatlantic healthcare technology group with an investment strategy focused on sourcing, funding and commercialising technologies that significantly improve the health and well-being of people with chronic diseases.
For more information, please visit the website at http://www.NetScientific.net
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [email protected] or visit www.rns.com.
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