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Henderson Morley PLC (HML)

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Monday 12 July, 2010

Henderson Morley PLC

UPDATE REGARDING KMS THERAPEU

RNS Number : 1579P
Henderson Morley PLC
12 July 2010
 



12 July 2010

HENDERSON MORLEY PLC

(AIM: HML)

UPDATE REGARDING KMS THERAPEUTICS LETTER OF INTENT


 
The Board of Henderson Morley plc ("Henderson Morley" or the "Company"), the AIM quoted biotechnology company, today further  updates the market regarding the Letter of Intent ("LOI") signed by specialist therapeutic drug development company, KMS Therapeutics, ("KMS") , which was the subject of previous announcements on 16 February 2010, 12 March 2010 and 11 May 2010.
 
The Board of KMS has confirmed to the Company that it is satisfied with the results of its scientific due diligence which has now been completed on ICVT and has reaffirmed its commitment to the commercialisation of ICVT.  KMS is continuing to work with several venture capitalists to finalise a funding structure as soon as possible, to facilitate legal completion of the acquisition. Whilst we remain confident that negotiations with KMS will be concluded, we remain in discussions with the unnamed non European company that signed an LOI as announced on 8 October 2009, and we will continue these discussions until such time as the sale of ICVT is concluded.


KMS continues to work towards the deadline of 14 July 2010, and we will report further on any progress which has been made on or around that date. The Company had available cash and bank facilities  of circa £
100,000 at 30 June 2010, and has a further sum of circa £100,000 available from R&D tax credits, which will become payable to the Company following the submission of an appropriate claim, upon completion of the Company's accounts for year ended 30 April 2010. In order to ensure the Company has adequate financial resources through the period to anticipated legal completion, the Company is seeking to put in place financing arrangements with Chairman Andrew Knight, and Chief Executive Dr Ian Pardoe. These arrangements have not yet been finalised, and are still the subject of discussion with the Independent Directors and the Company's nominated adviser, given that any such arrangement will constitute a related party transaction under Rule 13 of the AIM Rules for Companies. It is currently expected that the financing arrangement will involve the issue of a convertible loan, secured on the Company. Further details will be disclosed as and when these arrangements have been finalised.

 
Commenting Executive Chairman Andrew Knight said: "We remain encouraged by the hard work and commitment that KMS has demonstrated to date. We continue to work closely with KMS to complete this deal. Both Ian Pardoe and I are committed to ensuring the successful sale of ICVT and it is for this reason that we have decided to undertake responsibility for the Company's short term financing requirements."


Hank Klakura, President of KMS Therapeutics stated:  "We remain focused on the completion of this agreement and are grateful to Henderson Morley for their patience whilst we finalise discussions with our financial partners."

 

--Ends-

 

 



 

 

 

Enquires

 

HENDERSON MORLEY PLC                                                          0121 442 4600

Andrew Knight, Chairman                                              

 

BISHOPSGATECOMMUNICATIONS LTD                                        0207 562 3350

Maxine Barnes

Gemma O'Hara

 

BREWIN DOLPHIN INVESTMENT BANKING                                   0845 213 4730

Neil Baldwin

 

RIVINGTON STREET CORPORATE FINANCE                                 0207 562 3380

Jon Levinson

 

Further information on Henderson Morley plc can be accessed through the Company's website at www.henderson-morley.com

 

Notes to Editors

 

KMS is a specialist therapeutic drug development company that was established by a number of former Merck Generics Senior Executives including Hank Klakurka, former CEO, Steve Self, former Global R&D Director and Martin Marino, former Chief Legal Counsel. This company's model takes high potential drug candidates through clinical trials, regulatory and into production and sales. It currently has four development projects in its pipeline, one of which is a respiratory project and the other three are anti-infectives. 

 



 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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