Background to and reasons for the Cancellation
On 1st July 2009, Intercytex announced it had failed to find a buyer for the entire business but was in negotiations to sell various business assets. The Directors have also explored the possibility of raising further funds to continue development of Intercytex’ remaining development programmes. However, against the background of the current financial market, this has not been feasible. At the same time the Company has continued to conserve its cash resources by implementing measures to reduce overhead expenditure and headcount levels.
As announced on 23rd November 2009, Intercytex has completed the sale of certain of the business assets of its wholly owned subsidiary, Axordia, to Pfizer Limited for total cash consideration of US $750,000. These funds are being used to support ongoing operational costs and working capital requirements of the Company, but are insufficient to allow continued development of Intercytex’ remaining products. The Directors therefore believe that the best course of action is to sell all of the remaining assets of the Group and return excess funds (if any) to Shareholders. Pursuant to this goal, the Directors believe they are close to securing the sale of the majority of Intercytex’ assets in three further transactions relating to the disposal of: (i) the hair regeneration assets including ICX-TRC, (ii) certain wound healing assets including ICX-SKN and Cyzact, and (iii) the Company’s wholly-owned subsidiary Intercytex Limited, which includes the Vavelta assets.