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Formation of ProBiotix Health Limited and Appointment of Adam Reynolds as Chairman
24 September 2018
OptiBiotix Health plc (AIM: OPTI), a life sciences business developing compounds to tackle obesity, high cholesterol and skin care, announces the formation of a 100% owned subsidiary, ProBiotix Health Limited ("ProBiotix"), and appointment of Adam Reynolds as Non-Executive Chairman to ProBiotix's Board.
In July 2016, OptiBiotix announced a strategy to develop its technology platforms into separate divisions; each containing its own technology platform, intellectual property portfolio and partner agreements. In due course these divisions could become separate legal entities with the potential for a separate public listing. The first step in this strategy was commenced in March 2016 when OptiBiotix formed SkinBiotix Limited, which was admitted as Skinbiotherapeutics plc to AIM in April 2017. The listing of Skinbiotherapeutics plc materialised the value of a part of the business in which a 52% stake was acquired by OptiBiotix for £250K in March 2016 and which now has a market valuation of around £24m, with OptiBiotix® owning a 41.9% shareholding (£11.7m).
OptiBiotix's Probiotic division containing its cholesterol and blood pressure reducing strain LPLDL® has made strong progress with 14 commercial deals in just under 18 months and a large deal pipeline. This division uses its high throughput OptiScreen® technology for the identification of probiotics with specific health benefits as supplements or therapeutic products. OptiBiotix directors believe that this division has now reached a stage of scientific and commercial maturity with growing revenue streams where it may be advantageous to form a 100% owned subsidiary, called ProBiotix Health Ltd, with the potential for a separate public listing.
The appointment of Adam Reynolds as Non-Executive Chairman to ProBiotix's Board brings a track record of increasing shareholder value and leadership in building a team with a view to seeking an Initial Public Offering.
Stephen O'Hara, CEO of OptiBiotix, commented: "The formation of ProBiotix Health Limited and appointment of Adam Reynolds as Chairman continues a successful strategy of building value in each division which is materialised by forming separate legal entities and taking them to a public listing. As the listed company grows in value using its own funds, OptiBiotix shareholders benefit from the appreciation of the asset as exemplified by SkinBiotherapeutics plc. We are delighted to welcome Adam Reynolds as Chairman of ProBiotix as he brings extensive experience of equity markets and a proven record of taking companies to IPO. This is an innovative business model which over time looks to give OptiBiotix shareholders a position in multiple companies, and with it the prospect of multiple returns."
For further information, please contact:
|OptiBiotix Health Plc
Stephen O'Hara, Chief Executive
Contact via Walbrook below
|Cairn Financial Advisers LLP
Liam Murray / Jo Turner / Ludovico Lazzaretti
|Tel: 020 7213 0880|
Geoff Nash/ Scott Mathieson / Kate Bannatyne (Corporate Finance)
Camille Gochez (Corporate Broking)
|Tel: 020 7220 0500|
|Walbrook PR Ltd
|Tel: 020 7933 8780 or [email protected]
Mob: 07876 741 001
About OptiBiotix - www.optibiotix.com
OptiBiotix Health plc (AIM: OPTI), which was formed in March 2012, brings science to the development of compounds which modify the human microbiome - the collective genome of the microbes in the body - in order to prevent and manage human disease and promote wellness.
OptiBiotix has an extensive R&D program working with leading academics in the development of microbial strains, compounds, and formulations which are used as active ingredients and supplements. More than twenty international food and healthcare supplement companies have signed agreements with OptiBiotix to incorporate their human microbiome modulators into a wide range of food products and drinks.
OptiBiotix is also developing its own range of consumer supplements and health products. The Company's current areas of focus include obesity, cardiovascular health, and diabetes.
OptiBiotix Health secures significant exclusive licence agreement for OptiBiome
Stephen O'Hara | 01 Apr 2020