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Yourgene "Effectively Debt Free" After Deal With Life Technologies (ALLISS)

LONDON (Alliance News) - Genetic testing company Yourgene Health PLC on Monday said it has ...

Alliance News 18 February, 2019 | 12:42PM
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LONDON (Alliance News) - Genetic testing company Yourgene Health PLC on Monday said it has effectively eliminated its debt after striking a deal with Life Technologies and signing a new agreement.

Shares in Yourgene were up 8.9% at 14.15 pence on Monday.

Life Technologies will exercise its warrants over 41.4 million Yourgene shares at an average price of 9.2 pence each, bringing its holding to 9%. The GBP3.8 million proceeds from this will "be used to reduce the loan balance outstanding to Life Technologies".

Life Technologies will write off the remaining GBP12.7 million of loans. Yourgene is to create a GBP6.5 million contingent liability in case Yourgene is sold or becomes insolvent.

Once YourGene is cashflow positive, it will pay "modest commissions" on sales made in south east Asia up to a cap of GBP6.5 million.

Future gains by Life Technologies through its equity stake in Yourgene are to offset the commission and the contingent liability.

Life Technologies still holds warrants for 54.3 million shares, which have a weighted average exercise price of 16.6p per share. Life Technologies therefore holds a fully exercised position of approximately 17%.

"I am delighted with the restructuring of our relationship with Life Technologies, which places Yourgene in a stronger position to capitalise on the significant global non-invasive prenatal testing opportunity. Life Technologies will now be a supportive major shareholder in the business, and our new agreement creates a partnership through which we can continue to develop the high-growth [non-invasive prenatal testing] markets of Southeast Asia," said Yourgene Chief Executive Lyn Rees.

Yourgene provides genetic testing products and services and has granted Life Technologies a three-year exclusivity period for its non-invasive prenatal testing products in south east Asia. Yourgene will promote its non-invasive prenatal testing products exclusively through Life Technologies' sequencing systems.

"I am extremely encouraged by the progress that Yourgene has made in recent months. Trading in the second half of the current financial year is anticipated to be the strongest period to date and we will enter the new financial year effectively debt free...We have a strong pipeline of new product opportunities that will broaden our offering, making Yourgene even more relevant to our global partners," Rees added.

By Anna Farley; annafarley@alliancenews.com

Copyright 2019 Alliance News Limited. All Rights Reserved.

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Rating
Yourgene Health PLC 12.75 GBX -0.97 -

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