TIDMAKT

RNS Number : 6665I

Ark Therapeutics Group PLC

05 July 2013

Ark Therapeutics Group plc

Company Update

London, UK, 5 July 2013 - Ark Therapeutics Group plc (LSE: AKT) ("Ark") has been notified by Crawford Healthcare Ltd ("Crawford") that it is of the view that certain sales of its products (KerraMax Care) do not constitute relevant sales for the purposes of the earn-out consideration due to Ark (subject to certain revenue targets) under the sale agreement dated 7 February 2011 pursuant to which Ark's woundcare business was sold to Crawford Woundcare Limited. As such, in Crawford's view it is unlikely that the revenue targets will be met in respect of calendar year 2013. Ark strongly disagrees with the position Crawford is attempting to assert and, having taken legal advice, is confident that the product sales in question should be included in the relevant revenue targets which may or may not trigger earn-out consideration. Whilst any payment to Ark of deferred consideration remains subject to the agreed revenue targets being met in calendar year 2013, and as such no guarantee can be given as to the likelihood of those targets being met, Ark is confident that on the basis of advice its position is sound and it will take all steps available to it to protect its contractual rights.

Non-Executive Director, David Venables, comments:

"We were initially contacted by Crawford Healthcare to discuss their position in April and since then the Company has taken independent legal advice on the detail of the contract. Discussions continue, and we hope to resolve the matter amicably with Crawford Healthcare."

A further update will be provided in due course.

For further information please contact:

 
 Ark Therapeutics Group plc            Tel: +44 (0)207 002 1005 
 Iain G Ross, Non-Executive Chairman 
 David Venables, Non-Executive 
  Director

This announcement includes "forward-looking statements" which include all statements other than statements of historical facts, including, without limitation, those regarding Ark's financial position, business strategy, plans and objectives of management for future operations, and any statements preceded by, followed by or that include forward-looking terminology such as the words "targets", "believes", "estimates", "expects", "aims", "intends", "will", "can", "may", "anticipates", "would", "should", "could" or similar expressions or the negative thereof. Such forward-looking statements involve known and unknown risks, uncertainties and other important factors beyond Ark's control that could cause the actual results, performance or achievements of Ark to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. Such forward-looking statements are based on numerous assumptions regarding Ark's present and future business strategies and the environment in which Ark will operate in the future. These forward-looking statements speak only as at the date of this announcement. Ark expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statements contained in this announcement to reflect any change in Ark's expectations with regard thereto or any change in events, conditions or circumstances on which any such statements are based. As a result of these factors, readers are cautioned not to rely on any forward-looking statement.

This information is provided by RNS

The company news service from the London Stock Exchange

END

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