Provexis PLC Fruitflow(R) & Blood Pressure - purchase of IP (9798V)

TIDMPXS

RNS Number : 9798V

Provexis PLC

13 August 2020

Prior to publication, the information contained within this announcement was deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 ('MAR'). With the publication of this announcement, this information is now considered to be in the public domain.

13 August 2020

Provexis plc

("Provexis" or the "Company")

Fruitflow(R) and Blood Pressure - purchase of intellectual property from the University of Oslo - issue of equity

Provexis, the business that develops, licenses and sells the proprietary, scientifically-proven Fruitflow(R) heart-health functional food ingredient, is pleased to announce that it has entered into an agreement to purchase the background and joint foreground antihypertensive (blood pressure lowering) intellectual property and patents from Inven2 AS ('Inven2'), the technology transfer office at the University of Oslo ('the University'), for a total consideration of 11,500,000 new ordinary shares of 0.1p each in Provexis plc (the 'New Provexis Shares').

In November 2014, the Company signed (i) a collaboration agreement with the University of Oslo to undertake further research into the relationship between Fruitflow and blood pressure regulation and (ii) an option agreement with Inven2, the University of Oslo's technology transfer office, giving the Company an exclusive option to licence the University's existing background intellectual property, and any new joint intellectual property developed as part of the collaboration.

The Company provided primary funding for the collaboration work and the associated patent filings in major global territories. The patent filings were derived from an antihypertensive patent which the University had applied for in 2013. The results from the collaboration and these patent filings became joint foreground IP for the Company and the University.

The Company and Inven2 have agreed that Inven2 will now assign and transfer to Provexis outright ownership of the University's existing background and joint foreground IP. Antihypertensive patents derived from the University's 2013 patent application have now been granted for Fruitflow in Europe and three other major territories. Patent applications are being progressed in a further five major territories to include the US and China, with potential patent protection out to April 2033.

The University's 2013 patent application and all of the antihypertensive patents which have been derived from it are currently registered to the University, and the assignment announced today means that the patent application and all of the subsequent patents will be transferred into the name of Provexis. Provexis will therefore own these important patents outright, with the licensing option held by Inven2 effectively having been cancelled as part of this agreement.

The 11,500,000 New Provexis Shares were valued at GBP79,350 at the 0.69 pence closing mid-market price per Ordinary Share on 12 August 2020, being the latest practicable date prior to this announcement, and they represent 0.56% of the Company's existing issued share capital.

Application will be made to the London Stock Exchange for the New Provexis Shares to be admitted to trading on AIM. It is expected that the admission will become effective and that trading in the New Provexis Shares will commence on or around 19 August 2020 ('Admission').

Following Admission, the Company's enlarged issued share capital will comprise 2,070,821,507 ordinary shares with voting rights. The Company does not hold any shares in treasury. This figure of 2,070,821,507 ordinary shares may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change in their interest in, the share capital of the Company under the FCA's Disclosure Guidance and Transparency Rules.

In addition to the important blood pressure lowering patent family for Fruitflow which is the subject of this announcement, patent coverage for Fruitflow includes the following patent families which are all owned outright by Provexis:

-- Improved Fruitflow / Fruit Extracts, with a patent granted by the European Patent Office in January 2017 and a further European application accepted for grant in 2020. The patent has been granted in eight other major territories to include China, and patent applications are at a late stage of progression in a further six global territories, with potential patent protection out to November 2029.

-- The use of Fruitflow with nitrates in mitigating exercise-induced inflammation and for promoting recovery from intense exercise. The patent was first granted by the UK IPO (Intellectual Property Office) in May 2017, and further patents have been granted in Australia, China, New Zealand and Japan. Applications have been accepted for grant in Europe, the US and the Philippines, and further patents for this formulation are being sought in eight other territories, with potential patent protection out to December 2033.

   --    The use of Fruitflow in protecting against the adverse effects of air pollution on the body's cardiovascular system, which extends potential patent protection for Fruitflow out to November 2037. Recent laboratory work has shown that Fruitflow can reduce the platelet activation caused by airborne particulate matter, such as that from diesel emissions, by approximately one third. 

COVID-19 impact and trading update

Scientific research into COVID-19 is being undertaken at considerable scale, with more than two thousand studies in progress worldwide.

It is already clear that in many patients the virus is having a significant adverse effect on circulation, and it is causing wider issues with inflammation. Fruitflow is a natural, breakthrough ingredient that helps with platelet aggregation, supporting normal blood flow and circulation which in turn benefits cardiovascular health.

The science behind Fruitflow has been validated by leading peer review publications and regulatory authorities. Fruitflow is the only natural antiplatelet to have a health claim approved by the European Food Safety Authority, stating that 150mg of Fruitflow 'helps maintain normal platelet aggregation, which contributes to healthy blood flow'.

The Company and its Alliance partner DSM Nutritional Products have experienced increased consumer interest for Fruitflow in light of the COVID-19 pandemic, as consumers look to nutritional interventions to help them fortify the circulatory system against the effects of COVID-19. The Company and DSM will look to maximise the commercial opportunities arising from this increased consumer interest in Fruitflow, and will further promote the core blood circulatory and anti-inflammatory benefits of the product.

The Company's Fruitflow+ Omega-3 direct selling business has been operating largely as normal throughout the pandemic, and despite some initial delays in the supply chain a new production run of Fruitflow+ Omega-3 capsules has just been completed thus ensuring continued supply of the product.

The Company will issue a full trading update in due course.

Ian Ford, CEO of Provexis, commented:

'We are delighted to have secured outright ownership of this important blood pressure lowering patent family, and would like to thank the University of Oslo for their support and assistance throughout the collaboration.

The Company has developed a strong, long lasting and wide-ranging patent portfolio for Fruitflow, and it holds other valuable intellectual property and trade secrets for the technology. The intellectual property for Fruitflow is of fundamental importance to the Company and its current and future commercial partners, to include DSM and By-Health, and it underpins the numerous commercial opportunities which the Company and its partners are pursuing for Fruitflow.'

For further information please contact:

 
 Provexis plc                  Tel: [phone] 
  Ian Ford, CEO                 [e-mail] 
  Dr Niamh O'Kennedy, CSO 
 Allenby Capital Limited       Tel: [phone] 
  Nick Naylor / Liz Kirchner 
 

Notes for editors

About Provexis plc

AIM-listed Provexis is focused on the development, licensing and sales of its proprietary, scientifically-proven Fruitflow(R) heart-health functional food ingredient.

Fruitflow is a natural, breakthrough ingredient that helps with platelet aggregation. This helps promote normal blood flow and circulation, which in turn benefits cardiovascular health. Fruitflow helps the platelets to circulate freely and smoothly throughout your blood, without sticking to one another or to the blood vessels themselves. Freely flowing blood helps reduce stress on your cardiovascular system.

Fruitflow is a highly concentrated form of bioactives which is lycopene-free and contains over 30 known anti-platelet compounds. Published clinical studies have shown that Fruitflow works to maintain healthy blood flow in a similar way to 75mg aspirin but with a milder and reversible action; Fruitflow has a similar antiplatelet effect to a single dose of aspirin - but when taken daily, it has none of aspirin's side effects.

The science behind Fruitflow has been validated by leading peer review publications and regulatory authorities. Fruitflow is the only natural antiplatelet to have a health claim approved by the European Food Safety Authority, stating that 150mg of Fruitflow 'helps maintain normal platelet aggregation, which contributes to healthy blood flow'.

Provexis plc entered into a long-term Alliance Agreement with DSM Nutritional Products in 2010 to commercialise Fruitflow through sales as an ingredient to brand owners in the food, beverage and dietary supplement categories. More than 90 regional consumer healthcare brands have now been launched by direct customers of DSM, and a number of further regional brands have been launched through DSM's distributor channels.

The Company and DSM have seen an encouraging increase in brand awareness and customer interest in Fruitflow in recent years, with an increasing number of further commercial projects being initiated with prospective customers, including some prospective customers which are part of global businesses.

Fruitflow has a number of specific health benefits which have been reflected in three patent filings for:

-- The use of Fruitflow in mitigating exercise-induced inflammation and for promoting recovery from intense exercise, seeking to enhance further the potential of the technology in the sports nutrition sector. Further interest in the role of Fruitflow in exercise was generated by Team Sunweb Pro Cycling's use of Fruitflow in the 2018 Tour de France, and the Company is progressing the formulation and potential launch of a Fruitflow+ nitrates dietary supplement product which was used by Team Sunweb in the 2019 Tour de France www.fruitflowplus.com/sportrecovery.

-- The use of Fruitflow in managing blood pressure. A pilot study conducted with the University of Oslo indicated that a 150mg dose of Fruitflow in powder format significantly lowered the average 24-hour systolic blood pressure compared to placebo. When the monitoring time was split into waking and sleeping periods, both systolic and diastolic blood pressure were significantly lower after 150mg Fruitflow treatment than after placebo treatment during the waking period; systolic pressure was also significantly lower during the sleeping period. The results from the blood pressure collaboration were published in the International Journal of Food Sciences and Nutrition and the study is available to view on the Company's website at: www.provexis.org/wp-content/uploads/2017/09/IJFSN-Fruitflow-blood-pressure-study-Sep-17.pdf

   --    The use of Fruitflow in protecting against the adverse effects of air pollution on the body's cardiovascular system. Laboratory work has shown that Fruitflow can reduce the platelet activation caused by airborne particulate matter, such as that from diesel emissions, by approximately one third. The beneficial effects of this reduction can be observed in laboratory models representing healthy subjects as well as in models representing subjects with an underlying cardiovascular problem. 

Provexis sells a high quality dietary supplement product containing Fruitflow and Omega-3 from its separate website www.fruitflowplus.com on a mail order basis. The product is also available to purchase from Amazon.co.uk and from Holland & Barrett.

The Company is working with By-health Co., Ltd, a GBP4bn listed Chinese dietary supplement business, to support the planned launch of some Fruitflow based products in the Chinese market. The planned launch is progressing well with potential sales volumes remaining at a significant multiple of existing Fruitflow sales.

By-Health has made a significant investment in nine separate clinical studies in China, at its sole expense, in support of the Fruitflow based products which it plans to launch in China. The five studies which have been completed by By-Health showed excellent results in use for Fruitflow, and provide strong evidence for By-Health in its regulatory submissions for Fruitflow.

If a successful blue cap health claim is achieved for Fruitflow in China it would currently be expected to result in some significant recurring orders for Fruitflow, at a multiple of current total sales values.

In August 2019 the Company was delighted to announce it had signed an open-ended collaboration agreement with By-Health, in support of By-Health's planned launch of Fruitflow based products in the Chinese market. Project work will be managed and conducted by Provexis primarily in the UK, with the first project agreed concentrating on the use of Fruitflow with nitrates in exercise, an area of considerable commercial interest to By-Health. The agreement further strengthens the close relationship between By-Health and Provexis.

Provexis was founded in 1999 and is headquartered in Reading, Berkshire.

Provexis shares are traded on the AIM market of the London Stock Exchange under the ticker symbol PXS.

For further information, please visit www.provexis.com and www.fruitflowplus.com.

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August 13, 2020 02:00 ET (06:00 GMT)