EKF Diagnostics Holdings PLC Update regarding proposed IPO of Renalytix AI (4482Z)
August 31 2018 - 8:00AM
UK Regulatory
TIDMEKF
RNS Number : 4482Z
EKF Diagnostics Holdings PLC
31 August 2018
THE INFORMATION CONTAINED IN THIS ANNOUNCEMENT IS DEEMED BY THE
COMPANY AND RENALYTIX AI PLC TO CONSTITUTE INSIDE INFORMATION AS
STIPULATED UNDER ARTICLE 7 OF REGULATION (EU) NO. 596/2014. UPON
PUBLICATION OF THIS ANNOUNCEMENT VIA A REGULATORY INFORMATION
SERVICE, THIS INFORMATION IS CONSIDERED TO BE IN THE PUBLIC
DOMAIN.
EKF Diagnostics Holdings plc
("EKF" or the "Company")
Update regarding proposed IPO of Renalytix AI
Further to the Company's announcement on 4 July 2018 in relation
to Renalytix AI plc ("Renalytix AI"), EKF announces that it intends
to undertake further market soundings with institutional and other
qualifying potential investors, ahead of a prospective equity
Fundraising (defined below) by Renalytix AI and the admission of
its shares to trading on AIM ("Admission").
Renalytix AI is a developer of artificial intelligence enabled
clinical decision support tools for improving risk assessment and
clinical care in kidney disease, one of the largest and costliest
chronic medical indications globally. The product solutions being
developed by Renalytix AI are designed to make significant
improvements in kidney disease risk assessment, clinical care,
patient stratification for drug clinical trials and drug target
discovery.
Assuming a successful Fundraising, the boards of EKF and
Renalytix AI currently anticipate a pre-new money equity valuation
in the range of GBP43 - 55 million for Renalytix AI. Assuming a
total gross equity fundraising of approximately GBP21 - 25 million
(approximately $27.3 - 32.5 million) (the "Fundraising") at the
indicative valuation range, EKF's shareholding in Renalytix AI
following Admission would be approximately 37.4 - 42.8 per cent.
This would correspond to an equity interest in Renalytix AI of
GBP25.4 - 32.5 million.
The Fundraising is expected to include both a placing of and a
subscription for new Renalytix AI shares to institutional and other
qualifying investors (the "Placing and Subscription"), and a
restricted offer of new Renalytix AI shares of up to approximately
GBP2.5 million (and in any event not more than EUR5 million, c.
GBP4.5 million) available only to certain eligible existing EKF
shareholders who are resident in the European Union and that are
otherwise not subscribing for securities in the Placing and
Subscription (the "Restricted Offer"). The Restricted Offer is
expected to commence as soon as practicable following announcement
of the pricing of new Renalytix AI shares in the Placing and
Subscription. Irrespective of whether EKF shareholders participate
in the Fundraising, they will in any event have an indirect
economic interest in Renalytix AI through their shareholdings in
EKF.
In order to complete the spin-out of Renalytix AI as a separate
business, it is expected that the Company's shareholding in
Renalytix AI will be distributed to shareholders in the Company as
soon as practicable following Admission by way of a dividend in
specie. This process will be subject to shareholder approval at a
general meeting of EKF shareholders.
EKF shareholders should note that the proposed Fundraising
process is at a preliminary stage and an initial public offering
may or may not be completed by Renalytix AI and, if completed, the
valuation achieved and the Fundraising amount may both vary from
the ranges currently expected. Further updates will be provided as
appropriate, including as to details of a general meeting as
described above.
This announcement does not constitute an offer to sell or the
solicitation of an offer to buy any securities, and shall not
constitute an offer, solicitation or sale in any jurisdiction in
which such offer, solicitation or sale would be unlawful prior to
registration or qualification under the securities laws of that
jurisdiction.
Currency translations in this announcement have been calculated
at the following approximate rates: GBP1.00 = $1. 300 and
GBP1.00=EUR1.115.
The person who arranged for the release of this announcement on
behalf of the Company was Julian Baines, CEO.
Enquiries:
EKF Diagnostics Holdings plc
Christopher Mills, Non-Executive Chairman Tel: 029 2071 0570
Julian Baines, CEO
Richard Evans, FD & COO
N+1 Singer (Nominated Adviser & Broker) Tel: 020 7496 3000
Aubrey Powell / Lauren Kettle / George Tzimas (Corporate Finance)
Tom Salvesen (Corporate Broking)
Walbrook PR Limited Tel: 020 7933 8780 or ekf@walbrookpr.com
Paul McManus / Lianne Cawthorne Mob: 07980 541 893 / 07584 391 303
About EKF Diagnostics Holdings plc www.ekfdiagnostics.com
EKF is a leading point-of-care diagnostics and central
laboratory assay manufacturer with an estimated 80,000 hemoglobin,
hematocrit, HbA1c, glucose and lactate analyzers in regular use
across more than 100 countries. EKF specializes in developing tests
for use in anemia and diabetes diagnosis and management, as well as
providing a portfolio of reagents for use in clinical chemistry
analyzers.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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