Loss on Investments

RNS Number : 7884B

Billam PLC

21 August 2008

 



Billam PLC

('Billam' or 'the Company')

Loss on investments

21 August 2008

Billam PLC has a portfolio of investments in five companies. This investment portfolio includes a holding of 39.2% of the issued share capital of EiRx Pharma Ltd, which is an unquoted investment company with 2,245,083,333 shares in EiRx Therapeutics plc representing approximately 26.2% of its issued share capital as well as other investments. Billam also has a direct holding of 454,470 shares in EiRx Therapeutics plc. Billam's total direct and indirect interest in EiRx Therapeutics plc including a loan had a book value of approximately £283,000 as at 31 December 2007, being the date of Billam's last published balance sheet. Dealings in EiRx Therapeutics plc shares were suspended on 15 July 2008 and efforts have been made by that company to secure funding since that date. Yesterday it was announced that EiRx Therapeutics PLC is applying to put its subsidiary EiRx Therapeutics Limited into liquidation and that the directors of EiRx Therapeutics plc are working to put together a plan designed to secure the future of that company based around its other operating business, Auvation Limited.

In light of this announcement yesterday, the directors of Billam PLC believe that it is prudent and appropriate for Billam PLC to write off its investment in EiRx Therapeutics PLC, while wishing the directors of that company every success in their efforts to secure a future for it.

Taken together with a decline in the value of an unquoted investment in Tri - Mex Group Limited which had a book value of £150,000 as at 31 December 2007 and has now been also been written off, the overall value of the Company's investment portfolio has been reduced by approximately £433,000. This amounts to a significant reduction in Billam's net asset value which amounted to £703,000 as at 31 December 2007.

The Company is in discussions with Stephen Wicks, who holds approximately 28.2% of its issued share capital and has advanced loans to the Company, with a view to agreeing terms on which part of his loans are converted into equity. Such a conversion would result in Mr Wicks holding more than 30% of the Company's enlarged issued share capital and would be conditional on a waiver of an obligation which might otherwise arise under the Takeover Code for him to make a general offer to all shareholders. Mr Wicks has confirmed that he does not intend to demand repayment of the loans he has advanced to the Company in the short term and, subject to agreement as to the conversion terms and the necessary approvals being given, is willing to convert part of his loan into new equity.

For further information contact:

Billam PLC

Nish Malde                               [phone]

Libertas Capital  

Jakob Kinde                             [phone]

Sandy Jamieson     

 

END

 

 

MSCEANPFAESPEEE