Braveheart Investment Group PLC (AIM:BRH) said it has decided to seek a cash buyer for its wholly owned investee company Paraytec to realise near-term value for shareholders.
Paraytec develops specialist detectors for the analytical and life sciences instrumentation markets, with its CE-marked CX300 rapid-test instrument having made initial sales and, in conjunction with the ParaySelect separation technology, proving its ability as a useful tool for researchers investigating various diseases, including on COVID during the pandemic and in a sepsis detection.
Braveheart said in a statement alongside its interim results that it has hired an M&A specialist to market Paraytec to seek acquirers for the business, products and technology portfolio.
A sale of Paraytech “is considered to be the most effective way for Braveheart shareholders to realise value from their considerable investment and the significant technological progress made by the company over recent years”, said chief executive Trevor Brown.
“There can be no guarantee of concluding a sale but interest has already been received from credible and well-known operators in the sector and we will keep shareholders abreast of events,” he added.
The process is at an early stage, the company said, adding that many of the potential acquirers are already familiar with the business and have been awaiting results from the sepsis proof of concept.
For the six months to 30 September, Braveheart reported a loss of £732,000, versus £561,000 this time last year.
Net asset value stood at £9.8 million at the half-year stage, compared to £8.4 million a year ago and £10.5 million at the end of March.
The loss and the reduction in strategic investments in the half-year came principally from the reduction in the valuation of Phasefocus Holdings.
Phasefocus, of which Braveheart owns a 48.3% stake after investing an extra £150,000 in August, launched a T-Cell Killing Assay for its Livecyte cell imaging platform during the period, which provides detailed insights into immune and cancer cell interactions for developing cancer therapies.
Phasefocus shipped two Livecyte systems to China in October and made two further system sales to the Far East, with shipment expected in December.
Braveheart's other main investment is 86.11% owned Kirkstall Limited, a pioneer in the 'organ-on-a-chip' market, where developments included a collaboration with the University of Oxford to develop a dynamic milli-fluidic model of the blood-brain barrier to study brain cancer interactions, aiding drug development for brain cancer and central nervous system diseases.
Kirkstall also showcased its QV1200 products in Austria and is developing a range of toxicity test assays, advancing human-relevant drug safety research without animal testing.
Braveheart also has investments in three AIM companies, Aukett Swanke, Autins and Image Scan, selling its holding in Velocity Composites in the period.