Sale of Byotrol24 in the Americas
Byotrol plc ("Byotrol" or the "Company")
Sale of Byotrol24 in the Americas to Integrated Resources Inc
Byotrol is pleased to announce that it has completed the sale in the Americas of its US Environmental Protection Agency (EPA) registered, long-lasting antimicrobial surface spray (the "Formulation") to its existing licensee, Integrated Resources Inc ("IRI").
The agreement involves a sale by Byotrol to IRI of all rights to the Formulation in the Americas, including registrations and patent rights, in return for:
· cash payments amounting to US$1.4m in total, paid over a maximum of two years, with the first payment already made. For US regulatory reasons, Byotrol will remain formal legal owner of the Formulation until the payments are complete, although substantially all economic risks and rewards have now been transferred to IRI;
· three years of royalty on all IRI sales;
· further payments to Byotrol should IRI onward sell the Formulation within 3 years; and;
· Byotrol continuing to act as the preferred technical services provider to IRI and its customers on the Formulation, paid-for by IRI on a case-by-case basis.
Simultaneous with this sale, Byotrol has entered into a preliminary three-way agreement with IRI and a significant US distribution company ("USCo") to register with EPA and then sell the Formulation into US Professional markets. Should formal registration be achieved, sales by IRI to USCo will accrue additional royalties to Byotrol.
Byotrol retains all ownership and rights over the Formulation outside the Americas.
The Agreement continues the Company's strategy to cease its day-to-day operations in the US, whilst maintaining rights to share in the success of our partners and licensees.
David Traynor, Chief Executive of Byotrol, said:
Byotrol24 is going to a very good home in Integrated Resources, and we look forward to sharing in their continuing successes in the Americas. We are particularly pleased with the new relationships IRI has been building - and that we have been helpful in securing - in the last 18 months and we expect them to accelerate progress now, particularly in the very large US markets, helping to underpin management's expectations for the current and next financial year.
David Traynor - Chief Executive Officer
Nic Hellyer - Chief Financial Officer 01925 742 000
Geoff Nash/Kate Bannatyne - Corporate Finance 020 7220 0500
Richard Chambers - ECM
Flagstaff Strategic and Investor Communications
Tim Thompson/Andrea Seymour/Fergus Mellon 020 7129 1474
The information communicated in this announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) No. 596/2014.
Notes to Editors:
Byotrol plc (BYOT.L), quoted on AIM, is a specialist infection prevention and control company, operating globally in the Healthcare, Industrial, Food and Consumer sectors, providing low toxicity products with a broad-based and targeted efficacy across all microbial classes; bacteria, viruses (including coronavirus), fungi, moulds, mycobacteria and algae.
Byotrol's products can be used stand-alone or as ingredients within existing products, where they can significantly improve their performance, especially in personal hygiene, domestic and industrial disinfection, odour control, food production and food management.
Byotrol develops and commercialises technologies that create easier, safer and cleaner lives for everyone.
For more information, please go to byotrol.co.uk