TECC Capital likely to acquire EDX for £12 million

LONDON, UK: TECC Capital has conditionally agreed to acquire the issued, and to be issued, share capital of EDX, other than the shares to be issued to the Company pursuant to the exercise of its conversion rights arising under the Convertible Loan Notes, on the terms of an agreed SPA.

The aggregate consideration is £12 million to be satisfied by the issue of 200 million new ordinary shares to the shareholders of EDX at 6 pence per share.

At the same time, TECC Capital has conditionally raised approximately £1.2 million by way of the placing of 20 million new ordinary shares in order to provide working capital to finance the growth of the Enlarged Group.

It is also proposed that on completion of the SPA and readmission of the enlarged share capital to trading on AQSE the Company will change its name to EDX Medical Group Plc to reflect the business of the Enlarged Group.

EDX creates, develops and validates digitally-enabled diagnostic products and services to help predict disease risk, inform clinical decision-making and accelerate the development of new medicines in the areas of cancer, heart disease, neurology and infectious diseases.

By translating clinical insights into pragmatic solutions combining advanced biological and digital technologies, EDX seeks to improve the detection of disease risk and personalise disease management, enabling new clinical standards to be achieved cost-effectively in a timely fashion.

The Proposed Directors believe that early disease detection and risk prediction is the most impactful way of reducing deaths and lowering costs of healthcare provision in the future.

EDX’s laboratory and technical team provide diagnostic services including PCR testing and genomic sequencing (UKAS accredited: ISO15189), R&D/ innovation capabilities and quality assurance for a range of laboratory assays and ‘point-of-care’ diagnostic tests for health professional and self-test use.

Sandy Barblett, Chairman of TECC Capital, said: “I am delighted to announce the proposed acquisition of EDX and an associated Placing.

“EDX, an ambitious pioneer in digital diagnostics, is a dynamic business, led by a strong management team with a proven track record in growing SME businesses in the biotechnology sector, which the Directors believe is capable of significant growth.

“We believe the Acquisition presents the Company and our Shareholders with an exciting opportunity to invest in a new and disruptive biotechnology business with significant potential.”

On completion of the Acquisition, Jason Holt will be appointed as the new Chairman of the Company, Dr Michael Hudson will become Chief Executive, Professor Sir Christopher Evans will become Chief Scientific Officer and Professor Trevor Jones will join the Board as a Non-executive Director. The current directors, Sandy Barblett, John Taylor and Donald Stewart will step down from the Board on Admission.