Redx Pharma plc Statement re. Suspension (1689G)
May 24 2017 - 12:35PM
UK Regulatory
TIDMREDX
RNS Number : 1689G
Redx Pharma plc
24 May 2017
24 May 2017
REDX PHARMA PLC
("Redx" or "the Company")
LIVERPOOL CITY COUNCIL CALL IN LOAN
Suspension of Trading
Appointment of Administrators
Redx, the drug discovery and development company, announces that
the Company has requested a suspension of its shares from trading
on the AIM market of the London Stock Exchange with immediate
effect having been informed that administrators have been appointed
to the Company.
By way of background, the Company received a formal demand for
repayment of a loan that was made to a subsidiary of the Company,
RedX Oncology Limited, by Liverpool City Council ("LCC") in June
2012 (the "Loan"). The terms of the Loan were amended in March 2015
such that the maturity date of the Loan was extended to 31 March
2017 ("Maturity Date"). The Loan amount is GBP2 million, together
with interest at 12 per cent. per annum, which has been accrued and
also fell due for repayment on the Maturity Date.
The Company has been in discussions with LCC regarding the
repayment and/or restructuring of the terms of the Loan (involving
an initial payment and ongoing monthly payments), in order to reach
an amicable settlement, but these discussions, despite considerable
effort on the part of the board, have not been successfully
concluded.
The Company has been actively seeking to negotiate directly with
LCC and also to secure alternative sources of finance in order to
facilitate repayment of the Loan at the earliest practicable
opportunity. The Company offered LCC an immediate payment of GBP1
million in return for a short grace period in which to repay the
outstanding amount. This offer was rejected.
The Company understands that FRP Advisory LLP was appointed
administrators to the Company and RedX Oncology Limited earlier
this afternoon.
Iain Ross, recently appointed Chairman of the Company
commented:
"The timing of this action by LCC and its advisers FRP is
extremely unfortunate and quite baffling considering our efforts to
have face to face discussions, including earlier today, the
immediate offer of a payment plan and our latest proposal to make
an immediate GBP1million payment in return for a short grace
period. The Board and its advisers felt consistently confident that
we could have found the appropriate solution within a short period
and can't quite fathom why a creditor with whom we have had a good
relationship for over 5 years is taking such an aggressive stance
when they know, and have been provided with the evidence, that the
Company is making excellent progress on all fronts.
The Company, which now comprises 84 employees, has two
incredibly important state of the art cancer programs, which will
shortly commence clinical development in seriously ill patients and
both these assets are attracting significant partnering interest
from a number of large pharmaceutical companies. Despite this and
our assurances to resolve the matter quickly, LCC has refused to
meet with me or to have any direct discussion."
Further announcements will be made in due course.
For further information, please contact:
Redx Pharma Plc
Neil Murray, Chief Executive Officer T: +44 1625 469 900
Karl Hård, Head of Investor Relations T: +44 7491 651 406
&
Corporate Communications
Cantor Fitzgerald Europe (Nomad & Broker) T: +44 20 7894 7000
Phil Davies/ Michael Reynolds
WG Partners LLP (Joint Broker) T: +44 20 3705 9330
Claes Spång/ Chris Lee/ David Wilson
T: +44 20 3709 5700
Consilium Strategic Communications
Amber Fennell/ Matthew Neal/ Melissa Gardiner
About Redx Pharma Plc
Company website: redxpharma.com
Redx is focused on the discovery and development of proprietary,
small molecule therapeutics to address areas of high, unmet medical
need, principally in cancer, infection and immunology, providing a
pipeline of assets to larger and emerging companies. By improving
the characteristics of existing drug classes to create highly
differentiated, novel, best-in-class drugs, Redx has already
established a broad portfolio of proprietary drug programs.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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