Potential new issue of equity to a strategic investor
09 January 2008 - The Directors would like to update shareholders on recent preliminary discussions which have been taking place with a potential strategic, long term international investor. This may or may not lead to a substantial new investment in the Company and a collaboration for fund management of joint funds in the future. The collaboration would exploit the benefits of SPARK's management of a broad portfolio of technology and Life Science companies, along with access to intellectual property from leading UK academic institutions, and combine them with partners who can provide access for those companies to high growth international markets. It is currently envisaged that this new investment would be in the range of £15 - £20 million and priced at a significant premium to the current share price. These negotiations are at an early stage so there can be no certainty that this investment will be made or on what terms.
Such an investment would require shareholder approval to increase the Directors authority to allot the necessary share capital as it is envisaged that this investment in the Company would result in the issue of new shares. However, in the light of these negotiations, the Company has not been able to perform share buy-backs. The Directors believe that the net asset value reported in the interim statement dated 20th December 2007 of 15.5p has not materially altered, and that the Company will be free to make buy-backs subsequent to this announcement. A further announcement will be made in due course.
Enquiries:
SPARK Ventures plc
Andrew Carruthers 020 7851 7777
Collins Stewart Europe Limited - Nominated Adviser
Seema Paterson 020 7523 8321