AorTech International PLC Update (3582K)
April 16 2015 - 2:00AM
UK Regulatory
TIDMAOR
RNS Number : 3582K
AorTech International PLC
16 April 2015
AorTech International Plc ("AorTech" or the "Company")
Post Year End Update to Shareholders on litigation and other
matters.
Further to the end of the Company's financial year on 31 March
2015 the Company provides the following update on its financial
position, trading and litigation with its former CEO.
The Company confirms that it continues to pursue its legal
dispute against its former CEO Frank Maguire. Mr. Maguire has made
a counterclaim for alleged non-payment of expenses totalling
$168,000. The Board believes that this claim is of little merit and
appears to include expenses already reimbursed. The Company will
continue to defend the claim vigorously. As anticipated, the
Company has also brought a lawsuit against Mr. Maguire's new
business interest and certain related parties. The other parties
named in the Company's related action asserted counterclaims
alleging abuse of legal process. Those counterclaims have been
dismissed.
Overall, the Board does not believe that there has been any
material change in the status of the litigation. As previously
announced, AorTech maintains insurance in place to protect its
intellectual property and the Board can confirm that 90 % of the
ongoing legal costs of the disputes are covered by that
insurance.
As set out in the interim results announcement the manufacturing
license is not generating the levels of revenues that we had first
hoped for however we are in continuing discussions regarding
opportunities between manufacturing and product licensees that
could see an improvement in this business area. There is no further
update or material change to other licenses.
The Company's cash position at the end of March stood at
$360,000, a slightly improved position than at the half year stage.
The long standing debtor continues to meet its payment schedule and
should be recovered as anticipated, however the $175,000 debtor
mentioned at the interim stage has now grown to $275,000. A blue
chip has a secondary payment obligation on this debt and the
process of ensuring recovery is being considered. The Company's
financial position remains reliant on the timely collection of the
debtor book as set out in the interim results.
It is currently too early to provide guidance on full year
turnover as final quarter royalties have still to be notified by
licensees.
Enquiries:
AorTech International plc
Bill Brown, Chairman
Tel: +44 (0) 7730 718296
finnCap
Stuart Andrews/Giles Rolls
finnCap as Nominated Adviser
Tel: 020 7220 0500
This information is provided by RNS
The company news service from the London Stock Exchange
END
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