Partner Secured to Expand into MENA & Asia-Pacific

RNS Number : 2510T

WideCells Group PLC

11 October 2017

 

11 October 2017

WideCells Group PLC ('WideCells Group' or 'the Group')

Strategic Partner Secured to Expand into

The Middle East, North Africa and Asia-Pacific Territories

WideCells Group PLC, the healthcare services company focused on providing stem cell services and ground-breaking insurance for stem cell treatment, is pleased to announce that it has signed an exclusive Heads of Terms agreement with multi-sector advisory business White Apex General Trading ('White Apex'), to sell and promote the Group's stem cell services in the Middle East and North Africa ('MENA') and Asia-Pacific (excluding China) territories (the 'Territories'). 

Overview

·     Expansion into the Territories through exclusive strategic partnership with White Apex

·     Initial three-year binding agreement expected to be secured by 31 October 2017

·     Payment of £255,000 will follow completion of the formal agreement with recurring revenues to be generated thereafter

·     White Apex has option to require WideCells to develop Wideacademy in MENA, upon payment of additional £250,000, prior to 31 December 2017

·     Deal highlights global roll-out potential through securing worldwide commercial partners

·     Services to be promoted and sold across all three WideCells Group divisions 

·     New office to be established in Dubai headed by Dr Ahmed Alawi, a preeminent doctor in the stem cell sector

WideCells Group CEO, João Andrade, said, "This agreement is an historic achievement.  Not only is this the strongest strategic deal we have secured to date, but it marks our move into a significant new region: MENA and Asia-Pacific.  Crucially, revenues are expected to commence by the end of this year, with £255,000 to be paid following signing of the binding agreement, which is anticipated by 31 October 2017, and further revenues expected to follow in the near term with at least £250,000 targeted before the end of the year and similar numbers targeted year on year thereafter.  These figures will gain even more traction as we continue our expansion strategy and increase our global profile.  This agreement highlights how rapidly we can grow and we are committed to securing similar commercial partnerships as we transform the value fundamentals of our company."

Dr Ahmed Alawi said, "We are proud of our partnership with Widecells Group as we focus on creating a new paradigm and future medicine for our people.  Our aim is to improve lives and create hope; we believe this partnership will enable us to achieve these goals."

Further Information

WideCells Group anticipates that a formal binding three-year agreement will be secured with White Apex by 31 October 2017, at which point revenue generation for the Group will begin; £255,000 will be paid following signing of the agreement, and recurring revenues are expected to commence thereafter.  White Apex is a multi-sector advisory business with offices in the UAE, Oman, Bahrain and Kuwait.  The company supports clients across four primary divisions - Corporate Advisory, Investment, Energy and Healthcare - and is experienced in the marketing and sale of commercial products.

WideCells Group will be able to leverage White Apex's established infrastructure and intends to establish a regional office in Dubai, which will be run by a team from White Apex.  This team will be led by Dr. Ahmed Alawi, who will become WideCells Group Managing Director of MENA and Asia-Pacific.  Dr. Alawi is an experienced stem cell scientist who previously led a team at Genzyme, which was the world's third-largest biotechnology company in 2010, prior to its acquisition by Sanofi in 2011.  He also founded The Middle East Thrombosis Institute (www.tri-london.ac.uk).  Alongside his medical achievements, Dr. Alawi has considerable cross functional experience in international Fortune 500 & FTSE companies, having previously held roles at Philips Electronics and Shell International.  He also has notable regional connections, having previously worked within the Omani Government and most recently co-founded RAY International UAE in 2015, which is part of the leading RAY International Group (http://rayinternational.ae).

Other team members include Ahmad Jemain, who will become WideCells Group Chief Operating Officer of MENA and Asia-Pacific.  Mr Jemain has considerable experience in corporate and enterprise in the South East Asian region, particularly within the insurance industry.  Zakaria Aziz will also join the team as WideCells Group Business Development/ Marketing in South East Asia.  Mr Aziz is a successful entrepreneur who co-founded RAY Oman Group, which is part of the leading RAY International Group.  He has over 28 years of business experience in the oil and gas sectors in both South-East Asia and the Middle East. 

Under the terms of the initial three-year agreement, White Apex will sell and promote the following WideCells Group services:

·     WideCells, stem cell collection and dispatch - covers the processing, quality control, analysis (infectious disease screening) and long-term storage (up to 25 years) of cord blood and/or cord tissue

o  An initial start-up fee of £15,000 payable to WideCells Group on completion of formal binding agreement followed by on-going monthly support fees

o  Additional ongoing revenue from cord blood and tissue storage - White Apex to procure clients in the UAE and send samples to WideCells Group's Institute of Stem Cell Technology laboratory in Manchester

·     INDUS, a novel synthetic bone graft which promotes new bone formation.  Two products will be available for purchase - INDUS TCP and INDUS BCP

o  White Apex will be appointed as Distributor and authorised to sell INDUS directly to customers (such as clinics or dentists) or to appoint sub-dealers within the Territories

o  Minimum sales targets will be agreed and established in the first 90 days when entering each country within the Territories

·     CellPlan, the world's first stem cell healthcare insurance plan with financial cover for medical treatment, travel and accommodation expenses and concierge service to manage the treatment process

o  White Apex to facilitate introductions between CellPlan and insurance companies in the Territories with a view to securing commercial sales agreements

o  Potential for White Apex to introduce CellPlan to stem cell storage facilities and provide ongoing support

o  CellPlan will pay White Apex introductory commission fees

·     Wideacademy, providing stem cell education and training services via a custom-built Statistical Analysis System ('SaaS') platform

o  Paid for subscriptions for doctors and medical professionals to access premium content and digital tools - charged at £120 per year per subscriber/ doctor

§ White Apex to initially sponsor subscriptions for 2,000 doctors per year for two countries in the agreed Territories a period of three years - generating revenues of £240,000 by signing of the formal agreement - White Apex is expected to generate further sponsorship in its designated territories

§ Payment for the first 2,000 doctors is due to Wideacademy on conclusion of the formal binding agreement

§ Thereafter, revenues generated from all future subscriptions secured in the Territories will be shared between Wideacademy and White Apex

o  Wideacademy platform localised to the MENA region

§ White Apex has the right to pay £250,000 before 31 December 2017 for Wideacademy to localise its bespoke SaaS platform for use in the MENA region

o  Accreditation 

§ Wideacademy will offer courseware modules to Medical and Enterprise professionals to enhance their CPD (continuous professional development) - it is anticipated that these modules will be free-to-access, but the optional micro credential accreditation which comes from completion will be charged at c. £200 per module

§ Wideacademy will share with White Apex 30% of revenues derived from accreditation of online courses from users in the Territories

o  Licensing of the Wideacademy white-labelled platform

§ Opportunity for the Wideacademy platform to be used to drive Education, Thought Leadership and Knowledge Management in other areas of medicine outside of stem cells, e.g. Dementia, Cancer and other major health challenges

§ White-labelled platforms for areas outside stem cells to be available at a licence fee of approximately £500,000 in the first year and £250,000 in the following years (per annum)

§ Wideacademy will share revenues derived from such licensing deals introduced by White Apex with the company within the designated Territories

**ENDS**

For further information, please visit the Company's website www.widecellsgroup.com, follow us on Twitter @WideCells_Group or contact:

WideCells Group	CEO - João Andrade	Tel:  [phone]
Smaller Company Capital Ltd	Broker - Jeremy Woodgate & Rupert Williams	Tel: [phone]
Shard Capital Partners LLP	Broker - Damon Heath & Erik Woolgar	Tel: [phone]
St Brides Partners Ltd	PR - Charlotte Page & Olivia Vita	Tel: [phone]

Notes to Editors

WideCells Group PLC

WideCells Group PLC is building an integrated stem cell services company, focused on making stem cell treatments accessible and affordable.  In June 2017, the Group was ranked as the 21st most disruptive company globally by DISRUPT 100, an annual index celebrating the businesses with the most potential to influence, change or create new global markets.

The Group has three divisions:

·    CellPlan: the world's first stem cell healthcare insurance plan with financial cover for medical treatment, travel and accommodation expenses and concierge service to manage the treatment process

·    WideCells: The Institute of Stem Cell Technology has been established and is based in the University of Manchester Innovation Centre to focus on stem cell research and regenerative medicine. WideCells also has international cryogenics divisions specialising in stem cell storage.

·    Wideacademy: developing an education and training division to promote awareness of the benefits of stem cell storage across the global general practice community.

The Group has built an experienced senior management team that has been integral to the development of its growth and business to date.

Stem Cell Fast Facts:

·    Cord blood (which is taken from the umbilical cord) provides the most effective source of stem cells for families due to it being simple, safe and painless to collect relative to other sources of stem cells such as bone marrow - WideCells will focus on promoting the collection and storage of this.

·    Since 2005, there has been a 300% increase in the number of illnesses that can be treated using stem cells

·    82 illnesses can currently be treated using stem cell procedures

·    Despite initial storage often costing no more than a few £thousand, actual treatment can cost in the £hundreds of thousands

White Apex General Trading

White Apex is a boutique advisory business covering wide spectrum of services.  Rooted in engineering projects, over the years, the company has become a multi-sector, global advisory business focused on building highly valued relationships with individuals, corporates, institutions and Governments. Today, the company supports clients across four divisions:

·     Corporate Advisory

·     Investment

·     Energy

·     Healthcare

White Apex is a privately owned, dynamic company combining the diverse, complementary talents of a multi skilled team with global experience. The company prides itself on its integrity, agility and client-led, partnering approach. It invests time in developing a deep understanding of their clients' needs - partnering with them to provide solutions that enable their business, protect their assets and grow their capital. Whether their priority is empowering their business, increasing their presence, White Apex have the sector understanding and proactive risk management expertise to help them make the right decision at the right time and with the right people. They believe that by combining these qualities and experience they offer a distinct and compelling offering that sets the company apart from other firms. More importantly, these attributes help their clients solve the most exacting challenges and seize opportunities.

This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 (MAR).

 

END

 

 

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