Update on divestment of business assets

 

TIDMICX 
 
RNS Number : 8888C 
Intercytex Group plc 
23 November 2009 
 

23 November 2009 
 
 
Intercytex Group plc - update on divestment of business assets 
 
 
Intercytex Group plc (LSE: ICX) ("Intercytex" or "the Company") today announces 
that it has completed the sale of certain assets related to stem cell therapies 
from its wholly owned subsidiary Axordia Limited to Pfizer Limited for a total 
cash consideration of $750,000. GBP75,000 will be held in escrow until 1 May 
2010, with the remainder being paid immediately upon completion. 
Detailed discussions regarding the sale of other business assets are continuing 
and the Company anticipates making further announcements in due course. The 
proceeds from the sale of Axordia's assets will be used to support ongoing 
operational costs and working capital requirements of the Company as these 
discussions continue. 
In order to reduce costs, the Company has closed its offices in Cambridge, 
UK and Woburn, MA, and reduced its workforce to the three Executive Directors 
(Nick Higgins, Paul Kemp and Max Herrmann). All three Directors have been put on 
notice and it is anticipated that their employment with the Company will end 
once the divestment process is complete, which is expected to be by the end of 
the year. 
The combined impact of the realised consideration from Axordia, anticipated 
further receipts from the sale of other assets and the cost reduction measures 
outlined above will extend Intercytex' cash resources into 2010. 
As a result of the ongoing divestment process, the Company is not in a position 
to announce interim financial results for the six months to June 30, 2009. 
About Axordia Limited 
Axordia Limited is focused on the development of stem cell therapies for human 
diseases. As at 31 December 2008, the net book value of the assets attributable 
to Axordia Limited was GBP1.68 million, of which GBP1.73 million was goodwill. 
Axordia Limited reported a loss of GBP0.2 million for the financial year ended 
31 July 2008. 
 
 
 
 
Enquiries 
 
 
For more information, contact: 
 
 
+--------------------------------------------+--------------------------------------------+ 
| Intercytex Group plc                       |                                            | 
+--------------------------------------------+--------------------------------------------+ 
| Nick Higgins, Chief Executive Officer      | Tel: [phone]                         | 
+--------------------------------------------+--------------------------------------------+ 
| Max Herrmann, Chief Financial Officer      |                                            | 
+--------------------------------------------+--------------------------------------------+ 
|                                            |                                            | 
+--------------------------------------------+--------------------------------------------+ 
| Financial Dynamics                         |                                            | 
+--------------------------------------------+--------------------------------------------+ 
| Jonathan Birt                              | Tel: [phone]                         | 
+--------------------------------------------+--------------------------------------------+ 
|                                            |                                            | 
+--------------------------------------------+--------------------------------------------+ 
| Piper Jaffray Ltd                          |                                            | 
+--------------------------------------------+--------------------------------------------+ 
| Neil Mackison                              | Tel: [phone]                         | 
| Graeme Smethurst                           |                                            | 
+--------------------------------------------+--------------------------------------------+ 
 
 
Intercytex' shares are listed on the Alternative Investment Market of the London 
Stock Exchange under the ticker symbol ICX.L. 
Additional information on the Company can be found at www.intercytex.com 
 
 
Statements contained within this press release may contain forward-looking 
information or statements with respect to the financial condition, results of 
operations and business achievements/performance of Intercytex and certain of 
the plans and objectives of management of Intercytex with respect thereto. By 
their nature, forward-looking statements involve risks and uncertainties that 
may cause actual results to vary from those contained in the forward-looking 
statements. In some cases, you can identify such forward-looking statements by 
terminology such as 'may', 'will', 'could', 'forecasts', 'expects', 'plans', 
'anticipates', 'believes', 'estimates', 'predicts', 'potential', 'continue' or 
similar expressions.  A number of factors, including the satisfactory progress 
of research and development, could cause Intercytex' actual financial condition, 
results of operations and business achievements/performance to differ materially 
from the estimates made or implied in such forward-looking statements and, 
accordingly, reliance should not be placed on such statements. Forward 
projections reflect management's best estimates based on information available 
at the time of issue and are not a guarantee of future performance. Other than 
as required by applicable law, Intercytex does not undertake any obligation to 
update or revise any forward-looking information or statements to reflect events 
or circumstances after the date of this release. 
 
 
The term "Intercytex" refers to Intercytex Group plc and its subsidiary 
undertakings. 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
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