TIDMTEK
Tekcapital plc
05 October 2023
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5 October2023
Tekcapital Plc
("Tekcapital")
Portfolio Company Update: Belluscura plc
Tekcapital plc (AIM: TEK), the UK intellectual property
investment group focused on transforming university technologies
into valuable products that can improve people's lives, is pleased
to provide a comprehensive overview of Belluscura plc's
("Belluscura") recent significant developments.
Highlights:
-- Belluscura has reached agreement which could potentially
secure circa GBP8m growth capital to meet the demands of recent
orders and licensing royalty agreements totalling up to potentially
US$85m
-- Interest in DISCOV-R(TM) portable oxygen concentrator now
exceeds 10,000 units with a potential sales value guidance of over
US$30m
-- Exclusive License, Marketing and Distribution Agreement
signed with its manufacturing partner, Innomax Medical Device
Technologies ("InnoMax"). If minimum sales quantities set out in
the agreement are achieved the cumulative royalties will be worth
US$55m over ten years
-- Simon Neicheril has been appointed as CFO, bringing extensive experience in manufacturing
-- The Hong Kong Department of Health - Medical Device Division
has approved the distribution of the X-PLOR(R) portable oxygen
concentrator
-- Belluscura has received the first purchase order from a Hong Kong based distributor
Dr Clifford Gross, CEO of Tekcapital, commented:
"We are very pleased to see the significant progress of
Belluscura with enhancements to their balance sheet, regulatory
approvals, personnel, and sales pipeline. Together we view these
recent developments as transformative for Belluscura."
Orders of over 6,500 DISCOV-R (TM) received
On 16 August 2023, Belluscura announced that it had received
6,500 preliminary purchase orders for its DISCOV-R(TM) portable
oxygen concentrator representing approximately $15 million of
potential revenue to Belluscura. Further to the initial preliminary
purchase order announced 16 August, on 3 October, Belluscura
announced it had now received interest exceeding 10,000 units with
a potential sales value of over $30 million.
Exclusive licence, marketing and distribution agreement
On 30 August 2023, Belluscura announced it had entered into a
ten-year exclusive License, Marketing and Distribution Agreement
with its global manufacturing partner, InnoMax Medical Technology
covering China, Hong Kong, Macau and Singapore. The InnoMax
Agreement will range from $27.5m if the license is converted to
non-exclusive from year six and up to $55m in cumulative royalties
if the license remains exclusive for the entire ten-year term.
Belluscura will receive increasing minimum royalty payments over
the life of the agreement and a share of net profits on sales of
accessories.
In September 2023, Belluscura received its first approval for
the distribution of X-PLOR(R) portable oxygen concentrator from the
Hong Kong Department of Health - Medical Device Division, and
received its first purchase order from a Hong Kong distributor.
To facilitate Belluscura's delivery on these opportunities and
developments, they have reached agreements that could potentially
secure a total funding package worth circa GBP8m as detailed
below.
Growth Capital Funding Package
Belluscura has raised circa GBP8m growth capital by means of a
conditional equity placing, a conditional issue of 10% Unsecured
Convertible Loan Notes and a proposed share-for-share offer for TMT
Acquisition plc ("TMT Acquisition"). TMT Acquisition is listed on
the Main Market of the London Stock Exchange.
Belluscura and TMT Acquisition announced 3 October that they
have reached an agreement on the key terms of a possible
share-for-share offer for TMT Acquisition by Belluscura. TMT
Acquisition has cash and near cash of approximately GBP4.7 million
on its balance sheet. Belluscura will deploy the cash to enhance
manufacturing operations and for working capital.
The proposed terms of the Possible Offer comprise the issuance
of 15 new ordinary shares of Belluscura in exchange for every 22
ordinary shares of TMT Acquisition equalling 18,750,000 Belluscura
Shares. The agreement implies a valuation of 21.82 pence for each
TMT Acquisition Share and a 24.7% premium to the three-month volume
weighted average price for TMT Acquisition Shares calculated for
the period ending on 2nd October 2023.
Unsecured Convertible Loan Notes & Equity Placing
On 3 October, Belluscura raised approximately $4.02 million
(GBP3.32 million) through the conditional issue of approximately
GBP2.72 million (approximately $3.29 million) of 10% Unsecured
Convertible Loan Notes 2026 and the conditional issue of
approximately GBP0.60 million new ordinary shares of 1 penny each
at an Issue Price of 32 pence per Belluscura share.
CFO Appointment
To align Belluscura's financial base with future operations,
Simon Neicheril has been appointed Belluscura's Chief Financial
Officer (CFO) and will be based at Belluscura's U.S. headquarters
in Texas. Simon brings extensive experience in large-scale
manufacturing operations having joined from Pace Industries LLC, a
$600m revenue manufacturing company with nine locations across the
US and Mexico. He previously held the role of CFO at GlobalStep, a
high growth global software testing company with operations in
Canada, the United Kingdom, Romania, and India.
Tekcapital owns 15,138,767 shares of Belluscura plc
(representing approximately 11.0% of the issued share capital of
Belluscura).
About Tekcapital plc
Tekcapital creates value from investing in new,
university-developed discoveries that can enhance people's lives
and provides a range of technology transfer services to help
organisations evaluate and commercialise new technologies.
Tekcapital is quoted on the AIM market of the London Stock Exchange
(AIM: symbol TEK) and is
headquartered in the UK. For more information, please visit www.tekcapital.com.
LEI: 213800GOJTOV19FIFZ85
For further information, please contact:
Tekcapital Plc Via Flagstaff IR
Clifford M. Gross, Ph.D.
SP Angel Corporate Finance LLP (Nominated
Adviser and Broker) +44 (0) 20 3470 0470
Richard Morrison / Charlie Bouverat (Corporate
Finance)
Rob Rees (Corporate Broking)
Flagstaff Strategic and Investor Communications
Tim Thompson/Andrea Seymour/Fergus Mellon +44 (0)207 129 1474
This press release is for informational purposes only. The
information herein does not constitute investment advice nor an
offer to invest and may contain statements related to our future
business and financial performance and future events or
developments involving Belluscura and/or Tekcapital that may
constitute forward-looking statements. These statements may be
identified by words such as "expect," "look forward to,"
"anticipate" "intend," "plan," "believe," "seek," "estimate,"
"will," "project" or words of similar meaning. We may also make
forward-looking statements in other reports, in presentations, in
material delivered to customers, stakeholders and in press
releases. In addition, our representatives may from time to time
make oral forward-looking statements. Such statements may be based
on the current expectations and certain assumptions of Belluscura
and/or Tekcapital's management. Please note that these are subject
to a number of risks, uncertainties and factors, including, but not
limited to those described in various disclosures. Should one or
more of these risks or uncertainties materialize, or should
underlying expectations not occur or assumptions prove incorrect,
actual results, performance or achievements of Belluscura or
Tekcapital may vary materially from those described explicitly or
implicitly in the relevant forward-looking statement. Neither
Belluscura nor Tekcapital intends, nor assumes any obligation, to
update or revise these forward-looking statements in light of
developments which differ from those anticipated.
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END
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