RNS Number : 2108K
Arthro Kinetics plc
16 December 2008
Arthro Kinetics Secures Funding for its Long Term Survival
TUESDAY, 16th December 2008 - Arthro Kinetics plc (AIM: AKI) ("Arthro Kinetics" or the "Company"), the orthopedics company dedicated to
regenerating joint mobility announces that it expects to raise at least EUR500,000 in a fundraise having agreed heads of terms for new
investment with a commitment of EUR500,000 at a price of EUR0.03 (£0.026p) per share from a combination of its Japanese joint venture
partner, Polaris Rx Corporation ("Polaris"), and funds controlled by Heidelberg Innovation. The new investment, together with the group's
existing cash balance which remains in line with previous announcements, is expected to provide sufficient capital to support the operations
of the group beyond the end of 2010.
The Company is currently reviewing the most efficient group structure to support the ongoing business and anticipates that the new
investment will be directly into the group's primary operating subsidiary Arthro Kinetics Biotechnology GmbH ("AKI GmbH") in Austria. This
investment would account for approximately 16% of AKI GmbH with the remaining 84% being retained by the Company. However, in due course the
Company's intention is for the current group structure to be reduced to its simplest operating form with a single trading company based in
Austria.
Jason Loveridge, CEO of Arthro Kinetics comments;
"This is clearly a very important achievement for Arthro Kinetics, which, in the current difficult market conditions underlines the
potential of the Company. This additional finance will enable us to successfully complete our restructuring program in early 2009 and secure
the continuing availability of our autologous chondrocyte implant - CaReS® - in existing markets, the continuing success of our joint
ventures in Japan & China and the development of our new cell free implants".
ENDS
CONTACTS
Arthro Kinetics Plc Tel: +49 (0)711 305 110 70
Jason Loveridge, Chief Executive Officer
Doug Quinn, Chief Financial Officer
Nomura Code Securities Limited Tel: +44 (0)207 776 1200
Richard Potts
Giles Balleny
This information is provided by RNS
The company news service from the London Stock Exchange
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