AIM listed intellectual property group, Fusion IP, announced that it had agreed to sell its 64.1% equity stake in Axordia Limited to fellow AIM listed company, Intercytex Group, for approximately 4.49 million shares in Intercytex. Intercytex is issuing 7 million shares in total to acquire 100% of Axordia.
The deal values Fusion IP's stake at £1.1 million. Following the transaction, Fusion IP will hold a 4.78% stake in Intercytex.
David Baynes, CEO of Fusion IP, said: 'We are very pleased to announce this transaction which combines our Axordia operation with Intercytex and gives Axordia a better opportunity to realise its maximum potential. We recognise that Intercytex offers exciting prospects ahead in the stem cell medical arena and therefore believe that the structure of this deal increases the long-term potential for value creation for our shareholders.'
Axordia is developing a stem cell therapy to treat age-related macular degeneration, the leading cause of blindness in the elderly, in collaboration with The London Project to Cure Blindness. The product is in late stage preclinical trials.
Nick Higgins, Intercytex' CEO, commented: 'Recent developments in the area of stem cell research give us increased confidence in its ability to provide a highly effective source of therapies for use in future regenerative medicine products. Axordia's leading position in stem cell research, combined with our know-how in producing cell-based therapies to pharmaceutical industry standards, provides a strong platform from which to develop future cell-based therapies. The acquisition also provides us with a rich source of future potential pipeline candidates.'