Closure of subsidiary business

 

TIDMOXE 
 
RNS Number : 1201W 
Oxeco PLC 
23 July 2009 
 

Embargo for 7.00 am on 23 July 2009 
 
 
Oxeco Plc ("Oxeco "or "the Company") 
 
 
Closure of subsidiary business and ongoing investment strategy 
 
 
Oxeco, an investing company, made its first investment in June 2007 in a company 
called Oxray Limited ("Oxray") a start up business that aimed to become a 
leading provider of molecular structure determination services to both industry 
and academic institutions. 
 
 
At the time of the Company's investment in Oxray, the Directors advised that the 
Company would continue to identify investing opportunities in the technology and 
science sectors and especially that were complementary to the X-ray 
crystallography molecular structure determination business. 
 
 
The Company announced earlier in the year that Oxray had substantially completed 
the development of its novel X-ray crystallography structure determination 
software but the results of marketing efforts to establish a solid customer base 
had been disappointing. Also, Oxray has not been able to strengthen and develop 
its product service offering through bolt-on acquisitions in this field as 
originally envisaged in June 2007. 
 
 
The Company's investment in Oxray was written down to nil in its Financial 
Statements for the year ended 31 January 2009 and subsequent efforts to secure a 
commercial exit from the Oxray business have not been successful. The Directors 
have therefore concluded that the most prudent course of action in the current 
economic climate is to stop any further investment in Oxray with an emphasis on 
preserving cash. Oxray will now become a dormant subsidiary whilst retaining 
control of the underlying intellectual property ("IP"). In addition, the Company 
will transfer an equity stake of 15% in this subsidiary to Oxray's former 
Commercial Manager, Richard Cooper, as an incentive to help potentially realize 
some future value from the IP. 
 
 
The Company has approximately GBP2.3 million in cash and continues to seek 
investments in the general science and technology sector. 
 
 
Directorate Change 
 
 
Oxeco announces that following the action taken in relation to Oxray, Steve 
Davies, who joined the Company at the time of the Oxray acquisition, has today 
resigned as a Non Executive Director from the Board. 
 
 
Enquiries: 
 
 
+-----------------------------------------------+-------------+ 
| Michael                  [phone]  |  +44 (0)    | 
| Bretherton                                    | 207099 7266 | 
| Oxeco plc                                     |             | 
| www.oxecoplc.com                              |             | 
|                                               |             | 
| RayZimmerman /Jonathan   [phone] |             | 
| Evans                                         |             | 
| ZAI Corporate                                 |             | 
| FinanceLtd                                    |             | 
|                                               |             | 
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This information is provided by RNS 
            The company news service from the London Stock Exchange 
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