ESPERITE (ESP): transfers its laboratory activity to Geneva and consequently sells its Belgium loss making subsidiary and avoids EUR 4 millions of future cash out for charges and financial costs
As Esperite N.V. (Euronext: ESP, “Esperite” or “the Group”) is completing its strategy to concentrate its laboratory activities in its state of the art and fully certified facilities in Geneva, its Belgium subsidiary company CryoSave Labs (“CSL” or the”Company”) is left with no commercial activity and its facility in Neil has become redundant.
Amsterdam, The Netherlands – 10 January 2018
Over the past months the Group has unsuccessfully looked for parties to occupy the building currently owned by CSL (the “Building”) which sale and lease back contract is consuming a substantial amount of working capital and a lot of management attention.
The average value of the Building given by two independent real estate experts does not exceed EUR 3.5 million.This amount is valuated based on full occupency, which would require remodelling investment at a minimum of EUR 0.6 million. Moreover, the working capital consumption for the sale and lease back alone amounts to EUR 3.4 million for the next 6 years and operational costs adds up to EUR 0.650 million. Therefore, the net value of the company, taking into account these liabilities, as well as its current working capital requirements results at best the negative value of EUR -2.0 millions.
CEO Frederic Amar offered to support Esperite by acquiring the loss making Belgium company CSL with a structure he controls, taking such burden without receiving any asset and liability guarantee.
Esperite has accepted to sell all the shares of CSL to a company controlled by Mr. Amar by issuing a convertible loan note of EUR 2.5 million at a conversion price of EUR 0.50. Esperite did not provide any asset and liability guarantee to the buyer of CSL.
CEO Frederic Amar has not participated in the discussions or the decision-making of the board of Directors regarding the transaction price and conditions with respect to the sell and purchase agreement, nor the conditions regarding the issuance of the note.
In addition to the significant cost saving, Esperite makes substantial progress in the goal to optimise the Group and to focus on further development of its portfolio of activities.
ESPERITE group, listed at Euronext Amsterdam and Paris, is a leading international company in regenerative and precision medicine founded in 2000.
To learn more about the ESPERITE group, or to book an interview with CEO Frederic Amar: +31 575 548 998 – firstname.lastname@example.org or visit the websites at www.esperite.com www.genoma.com and www.cryo-save.com
This press release contains inside information as referred to in article 7 paragraph 1 of Regulation (EU) 596/2014 (Market Abuse Regulation).
With respect to Member States of the European Economic Area that have transposed European Directive 2003/71/EC of the European Parliament and European Council (as amended in particular by Directive 2010/73/EU to the extent that the said Directive has been transposed into each Member State of the European Economic Area), no action has been taken or will be taken to permit a public offering of the securities referred to in this press release requiring the publication of a prospectus in any Member State.
This press release and the information it contains do not, and will not, constitute an offer to subscribe for or sell, nor the solicitation of an offer to subscribe for or buy, securities of Esperite in the United States of America or any other jurisdiction. Securities may not be offered or sold in the United States of America absent registration or an exemption from registration under the U.S. Securities Act of 1933, as amended (the “U.S. Securities Act”), it being specified that the securities of Esperite have not been and will not be registered within the US Securities Act. Esperite does not intend to register securities or conduct a public offering in the United States of America.