PuriCore agrees to sell Supermarket Retail Business
Source - SMW
PuriCore said that, in line with its strategic focus on drug development, it has agreed to sell its Supermarket Retail Business to Chemstar for $13.5m gross, payable in cash and subject to a net working capital adjustment.
The deal requires shareholder approval and other customary requirements.
Separately, PuriCore booked an H1 loss from continuing operations of $2.8m, from a year-ago loss of $1.9m. Revenue was $0.36m, from $0.66m.
"It is expected that the Proposed Sale will be completed by early October and, if completed, a period of transition will follow during which the operations of the Supermarket Retail business will be transitioned to Chemstar Corp," the company said.
"The Group's focus will be continued development of a product candidate pipeline in several therapeutic areas based on formulations containing the Company's proprietary immunomodulatory technology.
"Investments are expected to increase in support of the filing of the two INDs and, following FDA acceptance, subsequent commencement of clinical studies in 2017.
"The Group will continue to have a modest revenue stream from the royalty associated with the Wound Care product which is licensed to SteadMed Medical. The Board believes that the focus on drug development should lead to the creation of significant shareholder value over the longer term."
At 9:26am: (LON:PURI) PuriCore PLC share price was +5.25p at 26p