Feedback PLC Disposal (0664X)
May 03 2016 - 6:00AM
UK Regulatory
TIDMFDBK
RNS Number : 0664X
Feedback PLC
03 May 2016
3 May 2016
Feedback plc
("Feedback" or the "Company")
Disposal
Feedback plc (AIM: FDBK), the medical imaging software company
is pleased to announce that it has agreed to sell its 50% equity
interest in Stone Checker Software Ltd ('Stone Checker') to Free
Association Books Limited, a company connected to one of Feedback's
directors, Trevor Brown, for a cash consideration of GBP46,000 (the
"Disposal").
Feedback invested GBP1,000 in Stone Checker in July 2015 and
subsequently licensed its TexRAD software to Stone Checker for
exclusive use in urolithiasis (kidney stones). On 28 September
2015, Feedback announced the intention to develop a product
incorporating TexRAD for kidney stones. It was further stated that
the vision of Stone Checker was to develop a composite risk
stratification software product incorporating TexRAD CT texture
analysis with other known clinical markers. This integrated product
could potentially assist urologists and radiologists to provide
better patient management and treatment decisions for improved
patient outcomes.
Stone Checker is making good progress and is reaching the stage
where it will require substantial additional investment. Feedback
has already announced that it is committing significant resources
in developing a lung cancer stratification tool in conjunction with
Alliance Medical Group. Accordingly, although urolithiasis could be
an exciting application for TexRAD, the directors of Feedback are
of the opinion that they should focus investment in TexRAD's use in
oncology. The sale of the equity interest in Stone Checker will
generate a profit of GBP45,000 before expenses. Feedback will
continue to receive royalty and licence payments should Stone
Checker achieve commercial success. The sale proceeds will be used
by Feedback for general corporate purposes.
Stone Checker is currently a pre-revenue company which made a
loss before tax for the period ending 29 February 2016 of
GBP154.
Related Party Transaction
Trevor Brown is a director and substantial shareholder in
Feedback. Dr Balaji Ganeshan is a director of Stone Checker
representing Feedback and is expected to remain a director of both
Feedback and Stone Checker after the Disposal. Accordingly, the
Disposal constitutes a related party transaction pursuant to Rule
13 of the AIM Rules for Companies ("AIM Rules"). The other three
directors of Feedback have no direct involvement in Stone Checker
and are not related to the purchaser of Feedback's holding and are
therefore deemed to be independent under the AIM Rules for the
purposes of considering the related party transaction (the
"Independent Directors"). The Independent Directors, having
consulted with Allenby Capital Limited, the Company's nominated
adviser, consider that the terms of the disposal are fair and
reasonable insofar as the Company's shareholders are concerned.
For further information, contact:
Feedback plc
Tom Charlton / Mike Hayball
Tel: 01954 718072
Allenby Capital Limited (Nominated Adviser and Joint Broker)
Simon Clements / James Thomas
Tel: 020 3328 5656
Peterhouse Corporate Finance Ltd (Joint Broker)
Lucy Williams / Duncan Vasey
Tel: 020 7469 0936
This information is provided by RNS
The company news service from the London Stock Exchange
END
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