The Barkby Group PLC (AIM:BARK), the investment firm, soared 134% higher on Monday after indicating it is considering selling its stake in technology group Cambridge Sleep Sciences (CSS).
Producing the ground breaking SleepEngine, a digital hub to help improve sleep quality, CSS has experienced significant licensing success this year including penning deals with Sleep Sense International Limited and Massimo Consumer Audio.
Appointing advisors to analyse potential deals, Barkby said it is undertaking a strategic review to consider a sale but noted there was no certainty a deal or offer would materialise.
Over the next three years, Barkby’s subsidiary is expected to generate over £10 million in revenues, with sales from the current signed and announced deals predicted to feed into CSS by the fourth quarter of the 2023 financial year.
Currently talking with several household names over potential multi-year licensing deals for the SleepEngine technology, the science firm will make further updates on any agreements as soon as is practicable.
Charles Dickson, executive chairman, said in an update: "We are delighted with the progress made by CSS over the last three years. The market opportunity for its technologies is clearly significant and we look forward to providing further updates on CSS's progress in due course.
"We expect CSS to become a significant business in its own right and the purpose of the strategic review is to evaluate the most appropriate corporate setting and structure for the company to allow it to develop its full potential as well as what is in the best interests of Barkby's shareholders."
Shares in Barkby are up 134% on Monday, having opened trading at 4.5p.