Omega Diagnostics Group PLC Heads of Terms agreed for Sale of CD4 Business (1199R)
July 04 2022 - 2:00AM
UK Regulatory
TIDMODX
RNS Number : 1199R
Omega Diagnostics Group PLC
04 July 2022
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulation (EU) No. 596/2014. Upon the publication
of this announcement via the Regulatory Information Service, this
inside information is now considered to be in the public
domain.
OMEGA DIAGNOSTICS GROUP PLC
("Omega" or the "Company" or the "Group")
Heads of Terms agreed for Sale of CD4 Manufacturing Business
In-line with strategic plan to focus on higher growth Health
& Nutrition division
Further to the Circular published on the 13 May 2022 indicating
that the Group's CD4 business was being marketed for sale, Omega
(AIM: ODX), the specialist medical diagnostics company focused on
industry-leading Health & Nutrition and Global Health products,
announces that after receiving a number of indicative offers, the
Company has now selected a preferred bidder to acquire its CD4
business. On 2 July 2022, Omega and the preferred bidder signed
Heads of Terms in relation to the sale of the Company's CD4
business, which manufactures and supplies VISITECT(R) CD4 and
VISITECT(R) CD4 Advanced Disease tests (the "CD4 Business").
The preferred bidder has now been granted four weeks in which to
complete the remainder of their due diligence, which mainly
comprises commercial discussions of a confirmatory nature with key
customers and suppliers. The transaction is expected to complete
shortly thereafter and will include a significant up-front cash
payment and a future royalty stream linked to VISITECT(R) CD4 test
sales.
As previously indicated the Board believes the CD4 Business will
be more successful under new ownership, with an owner which has a
greater capacity to invest in production capabilities and product
development. The Company will now focus solely on its Health &
Nutrition business, where there are significant growth
opportunities.
Recognising the future funding requirements of the Group will
change significantly following the divestment of the CD4 Business,
Bank of Scotland has agreed to extend the existing overdraft
facility of GBP2.0 million by an additional three months, to 30
September 2022. This allows Omega sufficient time to reassess the
funding requirement for its profitable and higher growth Health
& Nutrition division.
Jag Grewal, CEO of Omega, commented: "We were delighted by the
level of interest we have received for the CD4 business and look
forward to announcing the completion of the transaction in due
course. Having withdrawn from the COVID-19 market and disposed of
the Alva site earlier this year, the divestment of our loss-making
CD4 business will leave the Group solely focused on our higher
margin Health & Nutrition division. The net proceeds from the
sale of the CD4 Business will enable our product and geographical
expansion ambitions to be realised."
Contacts:
Omega Diagnostics Group PLC www.omegadx.com
Jag Grewal, Chief Executive Officer via Walbrook PR
Chris Lea, Chief Financial Officer
finnCap Ltd Tel: 020 7220 0500
Geoff Nash/Edward Whiley/George Dollemore
(Corporate Finance)
Alice Lane/ Harriet Ward (ECM)
Walbrook PR Limited Tel: 020 7933 8780 or omega@walbrookpr.com
Paul McManus Mob: 07980 541 893
Lianne Applegarth Mob: 07584 391 303
Sam Allen Mob: 07502 558 258
About Omega Diagnostics Group PLC
Omega manufactures and distributes high quality in-vitro
diagnostic products for use in hospitals, clinics, laboratories and
healthcare practitioners in over 70 countries and specialise in the
areas of health and nutrition and global health.
www.omegadx.com
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