Abaco Capital plc (AIM: ABA), today provides a business update following the demerger of its subsidiary Oxford Pharmascience Limited.
Following the demerger of the Company's operating assets and its 100 per cent owned subsidiary, Oxford Pharmascience Limited ("OPL") on 22 December 2017 (the "Demerger"), the Company is now classified as an AIM Rule 15 Cash Shell. As such, it is required to make an acquisition or acquisitions which constitute a reverse takeover under Rule 14 of the AIM Rules on or before the date falling six months from completion of the Demerger. It was further announced that, should the Directors be unable to identify a compelling target and complete a reverse takeover within the required timeframe, or require less than the currently available cash to do so and to fund the resulting group, they retain the option to return capital to shareholders. At the time of the Demerger, the Company's shareholders received shares in OPL in the same proportionate interest to their holding of shares in the Company, thus allowing shareholders to participate in any potential upside in the future performance of OPL.
Since the date of the Demerger, the Board has evaluated several potential reverse takeover opportunities. The Board has also consulted with certain major shareholders representing, in aggregate, over 70% of the total voting rights of the Company, to better understand their objectives for a potential transaction. The result of this process is that consensus as to a preferred target is unlikely to be reached, meaning that an investment qualifying as an AIM Rule 14 reverse takeover is not deemed to be practical.
As a result of the above, the Board now anticipates a return of capital to shareholders. The Board will assess the most efficient mechanism through which to return capital and will make further announcements in due course, including as to the expected timetable of events.
Due to ongoing cost control measures, the Company had cash balances of approximately £19.2 million as at 26 February 2018.
For further information:
|Oxford Pharmascience Group Plc|
|Chris Hill, Chief Financial Officer||+44 207 554 5875|
|N+1 Singer (Nominated Adviser & Broker)|
|Aubrey Powell/Jen Boorer||+44 20 7496 3000|