Update Regarding Placing and Financial Position

RNS Number : 8491Q

WideCells Group PLC

11 June 2018

 

11 June 2018

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

Placing Update and

Update Regarding the Group's Financial Position

WideCells Group PLC, the healthcare services company focused on providing stem cell services and ground-breaking insurance for stem cell treatment, provides the following update on its financial position.

As announced on 5 June 2018, the Group has received placing commitments for gross proceeds of at least £1.8 million (the 'Placing') and has released its audited results for the year ended 31 December 2017. The Directors have calculated that the Group needs to raise a minimum of £1.5 million to enable the Group to continue to operate as a going concern. Completion of the Placing will satisfy the working capital requirements of the Group. The Directors anticipate that completion of the Placing will take place before the end of June 2018, in line with the Group's announcement on 10 May 2018.

Should the Placing not complete in accordance with its terms by 29 June 2018, or alternative funding found, the Group would not be able to continue trading as a going concern and would be obliged to cease operations which could include administration, receivership, liquidation or other insolvency proceedings.

Additionally, the Group provides the following updates regarding its financial position.

There have been significant changes in the financial condition, trading position and operating results of the Group subsequent to 31 December 2017 (being the date to which the most recent audited results for the Company were prepared) and these are listed below.

As at 8 June 2018, the latest practicable date when preparing this information, the Group had a net bank overdraft, after offsetting positive cash balances, of £614,533 against an overdraft facility of £624,500 which is due to be reviewed on 29 June 2018.

In order to assist it with managing its current working capital requirements, the Group has:

·     since 1 January 2018, arranged interest free loans from Directors of approximately £120,000. Such loans are repayable on demand after 1 July 2019;

·     negotiated payment terms with existing trade creditors;

·     negotiated terms with its banks to extend its facilities; and

·     revised its current growth plans downwards and cut back on all discretionary expenditure to conserve cash.

WideCells Group will update the market with the next steps in the completion of the Placing in due course.

The information contained within this announcement is considered to be inside information prior to its release, as defined in Article 7 of the Market Abuse Regulation No. 596/2014, and is disclosed in accordance with the Company's obligations under Article 17 of those Regulations.

**ENDS**

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

WideCells Group PLC	CEO - João Andrade	Tel:  [phone]
Smaller Company Capital Limited	Broker - Jeremy Woodgate & Rupert Williams	Tel: [phone]
Shard Capital Partners LLP	Broker - Damon Heath & Erik Woolgar	Tel: [phone]
St Brides Partners Limited	PR - Charlotte Page & Isabel de Salis	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.  This is achieved through three divisions:

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 provide stem cell storage services and focus on stem cell research and regenerative medicine. Its international cryogenics division specialises in stem cell storage, with the Group currently offering umbilical cord blood and tissue storage services to clients in the UK and Europe under the brand name BabyCells.

·     Wideacademy: 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 cord blood.

·     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

 

END

 

 

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