Braveheart Investment Group PLC (AIM:BRH) has taken a 29.5% stake in brain cancer diagnostics group IQ-AI through the purchase of chief executive Trevor Brown’s stake at a total cost of around £719,000.
Classed as a related party transfer as he is the chief executive of both companies, Brown sold 65,415,862 shares in IQ-AI to Braveheart for £503,371 or a price of 1.1p per share.
A further 19,654,779 shares in IQ-AI were sold to Braveheart by a company owned by Trevor Brown’s children on the same terms.
Braveheart’s independent directors said they were offered the chance to acquire a substantial stake in IQ-AI at what they considered was an attractive entry price.
In a statement, Braveheart added: “They [the independent directors] consider that IB [an IQ-AI subsidiary] is making progress in its Phase 1 Clinical Trial of gallium maltolate.
“The IQ-AI business fits well with Braveheart's investment strategy and will make an attractive addition to its investment portfolio,” said the statement.
Shares in both Braveheart and IQ-AI jumped more than 14% to 4p and 1.38p respectively on the news.