GAI Galileo Inn.

RNS Number:0305Z
Galileo Innovation PLC
24 July 2002






Press Release                                                       24 July 2002


                            Galileo Innovation plc

                   Launch of 'in specie' dividend payment

                          Healthy investment pipeline

Galileo Innovation plc, the Cheshire-based business accelerator, is to become
the first UK PLC to pay its dividend as 'in specie' shares in investee companies
that go forward to an IPO.  Galileo has already identified five investee
companies for which an IPO is a possible exit strategy.  In such cases, a
percentage of shares in the newly listed company will be distributed to Galileo
Shareholders.

The advantages for Galileo's existing shareholders is that Capital Gains Tax
taper relief may be available if these shares are kept for one year or more, and
also shareholders retain ownership of equity in growth companies.  At the time
of IPO, Galileo's cash backed guarantee will be released allowing it to use its
funds for further guarantees to seek and develop suitable businesses and
technologies.  Following the IPO of an investee company, Galileo will retain a
5% holding in that company.

Galileo also announces that it is now proceeding with further funding in five
businesses out of a potential sixty-seven companies that the Company has
reviewed in detail since its Admission to AIM in February 2002.  It continues to
carry out due diligence on the remaining 62 in its pipeline.  In total, the
Company has viewed the business plans and technologies of 2,200 businesses,
inventions, or proposals since its formation in November 2001.

Strict criteria are adhered to in selecting investee companies for further
development.  A manufactured product with mass market potential, strong global
IP, uniqueness in field, and a visible exit strategy, most likely by IPO or
trade sale, are all pre-requisites.

The five currently selected for further development will receive cash-backed
overdraft guarantees of between £0.5 and £1.0 million.  Galileo's cash at bank
stood at £5.27 million as at 31 March 2002.

Galileo was established in order to identify British inventions that have
significant potential and to provide the expertise and financing necessary to
enable inventors to commercialise their ideas.

Paul Davidson, Chief Executive Officer of Galileo Innovation plc, said: "With
the 'in specie' shares, Galileo is offering its Shareholders a totally unique
form of return on their investment, and gives a value-entry into the development
and commercialisation of British inventions.

"We stated at the time of our own listing on AIM in February that the companies
we chose to invest in would all have an exit point for investors.  We are
confident that a number within our portfolio will reach this point in the near
term.  The ongoing pipeline is similarly healthy and new inventions and business
plans are being submitted all the time.  Galileo is in good shape and will meet
the expectations of its investors, who wish to benefit from the skill-sets that
the Galileo team offers."



                                    - Ends -



For further information:

Galileo Innovation plc
Paul Davidson, Chief Executive Officer        Tel: + 44 (0) 1625 538 100
Email: paul.davidson@galileoinnovation.co.uk                                                  
www.galileoinnovation.co.uk

Media Enquiries:
Bankside Consultants Limited
Henry Harrison-Topham / Heather Salmond       Tel: +44 (0) 20 7444 4140
Email: henry.ht@bankside.com                                                                             
www.bankside.com




                      This information is provided by RNS
            The company news service from the London Stock Exchange

Galileo Inn. (LSE:GAI)
Historical Stock Chart
From May 2024 to Jun 2024

Galileo Inn. (LSE:GAI)
Historical Stock Chart
From Jun 2023 to Jun 2024