REG-4basebio Plc: Final Result and Notice of AGM
09/05/2022 07:15
9 May 2022
4basebio plc
("4basebio", the "Company" or the “Group”)
Final Results and Notice of AGM
The Board of 4basebio plc is pleased to report the results for the financial
year ended 31 December 2021.
The annual report and accounts together with a notice of the Company’s
annual general meeting, which is to be held at 9:00 a.m. on Thursday, 9 June
2022 at The Cambridge Belfry, Back Lane, Great Cambourne, Cambourne, Cambridge
CB23 6BW, are expected to be uploaded to the Company's website and posted to
shareholders shortly.
The annual general meeting will be followed by a presentation from the Company
through the Investor Meet Company platform on 13 June 2022 at 10am.
Investors can sign up to Investor Meet Company for free and register
interest
here: https://www.investormeetcompany.com/4basebio-plc/register-investor.
Highlights
* Admission to AIM
* Commenced development of clean rooms for manufacture of DNA
* Patents filings for hpDNA™, osDNA™ and Hermes™ technologies
* Evaluation Licence for muscular dystrophy vector
* Joint Development Agreement with Leucid Bio
* Strategic Research Collaboration with eTheRNA immunotherapies
4basebio PLC (formerly 4basebio UK Societas) is a holding and service company
for the 4basebio group of companies and was spun out of 2Invest AG in 2020 and
subsequently listed on AIM on 17 February 2021.
The Group is a specialist life sciences group of companies focused on
supplying therapeutic DNA for gene therapies and gene-based vaccines and
providing solutions for effective and safe delivery of these DNA/RNA based
products to patients.
4basebio is now engaged in the development and manufacture of synthetic DNA
and RNA products, targeted non-viral vector solutions and early stage AAV
services. The Group’s near-term focus is the commercial supply of DNA and
mRNA to partners for a range of gene therapy and vaccine applications,
initially at research grade and in due course under GMP guidelines. 4basebio
is also working to commercialise its targeted Hermes™ delivery technology
across a range of indications and a breadth of tissue and cell types. It
offers development services in addition to the development of its own
portfolio of programs in conjunction with partners.
Dr Heikki Lanckriet, CEO and CSO for 4basebio, said: “4basebio operates in a
rapidly expanding and exciting market, where we view the commercial
opportunity for our synthetic DNA and Hermes™ technologies with increasing
confidence. The significant progress made during to 2021 has led to our
first DNA sales during 2022 and growing interest in our products from partners
and prospective customers.”
For further enquiries, please contact:
4basebio PLC +44 (0)12 2396 7943
Heikki Lanckriet, CEO
+44 (0)20 7213 0880
Cairn Financial Advisers LLP (Nominated Adviser )
Jo Turner / Sandy Jamieson
finnCap Ltd (Broker)
Geoff Nash/Richard Chambers/Charlotte Sutcliffe +44 (0)20 7220 0500
Chairman’s statement
Performance
2021 was a year of considerable progress for 4basebio in its operational and
strategic development. Much of the year focussed on the continuing validation
and scaling of its DNA and non-viral delivery platform technologies. As
4basebio entered Q4, the Group’s attention moved toward commercialisation,
with the development of manufacturing suites near Cambridge.
The Group invested heavily during 2021, with resultant net loss for the year
of £3.2million. With this increasing activity, recruitment was a key
priority both in R&D and manufacturing teams and the group ended the year with
strong growth in headcount during the year and into Q1 2022.
4basebio will continue to be loss making during 2022 and will rely on its cash
resources, recognising it also has access to a Euro 25million loan facility
with 2Invest AG, its former parent.
Strategy
4basebio remains focussed on becoming a leading provider of synthetic DNA and
RNA products and non-viral delivery technology for the cell & gene therapy and
vaccines markets.
The Group is potentially unique in developing customisable synthetic DNA
constructs which can be adapted for specific gene therapy and vaccine
applications. It is also apparent that 4basebio is well placed to manufacture
not only DNA but other RNA constructs, such as mRNA. Alongside this, the
Hermes™ technology offers cell and tissue specific targeting and is also
able to deliver a range of nucleic acid payloads.
This breadth and depth of expertise enables 4basebio to position itself as an
integrated solution provider, combining where appropriate its DNA and RNA
products with its delivery platform. Through this, the Group can offer a
range of solutions to customers depending on application needs.
4basebio is also working on its own programs in combination with partners.
These programs showcase the Group’s technology and demonstrate its wide
applicability across AAVs, mRNA IVT, CAR-T and DNA vaccines, gene editing and
gene therapies. As part of this, the Group recently announced strategic
partnerships, collaborations and joint developments with eTheRNA
immunotherapies, Royal Holloway and Leucid Bio.
Share Price
Since 4basebio debuted on AIM, the share price has seen strong growth, closing
the year at £6.15 per share from its debut price of £1.18. This has been
accompanied with a degree of volatility having peaked at £7.60 in October and
since year end having fallen to a low of £4.60. This has also been combined
with a large bid/offer spread.
A majority of 4basebio PLC’s shares is closely held, with directors and the
Company’s two largest shareholders together holding 66%; and a large
percentage of the remaining shares are held by other longer-term investors.
This leads to modest trading volumes and a degree of volatility, with market
makers adjusting spreads to reflect this.
The Board recognises that an increase in liquidity is desirable and a fund
raising may assist in this process. At the same time, the Board is also
sensitive to shareholder dilution and will only consider such a course where
the Company valuation is deemed to support it. At the present time, there
are no plans for this.
People and Culture
The Group has grown quickly during 2021 with overall team numbers having
increased from 21 at the beginning of the year to 33 at year end. 4basebio
believes it has been successful in fostering an open, supportive and enjoyable
workplace where its very talented scientific teams are able to innovate and
achieve remarkable progress towards the Group’s overall objectives.
On behalf of the Board, I would like to extend our thanks to the whole team
for their dedication over the past year.
Tim McCarthy
Chairman
Consolidated statement of profit or loss and other comprehensive income
for the year ended 31 December
[in £‘000] 2021 2020
Revenues 338 462
Cost of goods sold (69) (188)
Gross profit 269 274
Sales and marketing expenses (132) (141)
Administration expenses (1,725) (516)
Research and non-capitalised development expenses (1,622) (343)
Other operating expenses (400) (1)
Other operating income 83 105
Loss from operations (3,527) (622)
Finance expense (113) (94)
Financial result (113) (94)
Loss before tax (3,640) (716)
Income tax 405 (3)
Loss for the year (3,235) (719)
Items that may be reclassified to the income statement in subsequent periods
Exchange differences on translation of foreign operations (608) 162
Total comprehensive income (3,843) (557)
Loss per share
* Basic and diluted (in £/share) (0.26) (0.08)
All of the loss for the year is from continuing operations.
Consolidated statement of financial position
31 December
[in £’000] 2021 2020
Assets
Intangible assets 1,271 785
Property, plant and equipment 2,759 1,478
Other non-current assets 30 34
Non-current assets 4,060 2,297
Inventories 156 131
Trade receivables 46 39
Other current assets 854 341
Cash and cash equivalents 9,586 15,001
Current assets 10,642 15,512
Total assets 14,702 17,809
Liabilities
Soft loans and leases (432) (416)
Trade payables (353) (96)
Other current liabilities (738) (301)
Current liabilities (1,523) (813)
Soft loans and leases (1,326) (1,301)
Other liabilities (158) (237)
Non-current liabilities (1,484) (1,538)
Total liabilities (3,007) (2,351)
Net assets 11,695 15,458
Share capital 11,130 11,130
Share premium 706 706
Merger reserve 688 688
Capital reserve 13,179 13,099
Foreign exchange reserve (433) 175
Profit and loss reserve (13,575) (10,340)
Total Equity 11,695 15,458
Consolidated statement of changes in equity
for the year ended 31 December 2021
[in £‘000] Share capital Share premium Merger reserve Capital reserve Foreign exchange Profit and loss reserve Total equity
Balance at 1 January 2021 11,130 706 688 13,099 175 (10,340) 15,458
Loss for the year - - - - - (3,235) (3,235)
Foreign Exchange difference arising on translation of 4basebio S.L.U. - - - - (608) - (608)
Share based payments - - - 80 - - 80
Balance at 31 December 2021 11,130 706 688 13,179 (433) (13,575) 11,695
[in £‘000] Share capital Share premium Merger reserve Capital reserve Foreign exchange Profit and loss reserve Total equity
Balance at 1 January 2020 6,362 - - 1,356 13 (9,621) (1,890)
Capital contributions from 4basebio AG (now 2Invest AG) - - - 11,743 - - 11,743
Combination accounting (6,258) - 688 - - - (5,570)
Loss for the year - - - - - (719) (719)
Shares issued for cash 3,209 706 - - - - 3,915
Foreign Exchange difference arising on translation of 4basebio S.L.U. - - - - 162 - 162
Shares issued to acquire subsidiaries 7,817 - - - - - 7,817
Balance at 31 December 2020 11,130 706 688 13,099 175 (10,340) 15,458
-Eigen
Consolidated statement of cash flows
for the year ended 31 December
[in £’000] 2021 2020
Net loss for the period (3,235) (719)
Adjustments to reconcile net loss for the period to net cashflows
Income taxes (405) 3
Interest charge 113 94
Depreciation of property, plant and equipment 242 83
Amortisation and impairment of intangible assets 78 194
Other non-cash items 12 25
Working capital changes:
(Increase)/decrease in trade receivables and other current assets (126) 91
Increase/(decrease) in trade payables and other current liabilities 615 (876)
Increase in Inventories (34) (24)
Tax receipt - 107
Net Cash flows from operating activities (2,740) (1,022)
Investments in property, plant and equipment and intangible assets (884) (351)
Investments in capitalised development (628) (498)
Cash acquired with 4basebio Limited (now 4basebio UK Limited) - 2,295
Cash flows from investing activities (1,512) 1,446
Repayment of loans (331) (1,024)
Capital contributions by way of cash - 15,626
Interest paid (76) (116)
Capital lease payments (60) (59)
Cash flows from financing activities (467) 14,427
Net change in cash and cash equivalents (4,719) 14,851
Exchange differences (696) 70
Cash and cash equivalents at the beginning of the period 15,001 80
Cash and cash equivalents at the end of the period 9,586 15,001
Notes to the financial statements
1. General
4basebio PLC (formerly 4basebio UK Societas) (the “Company” or
“4basebio”) is registered in England and Wales.
The Company was originally incorporated in Germany on 11 October 2019 as a
European Company (also known as Societas Europaea or SE with the name Atrium
180. Europäische VV SE). On 11 November 2020, the Company changed its name
to 4basebio SE. Subsequently, the Company moved its registered office from
Germany to the UK. This was recorded with Companies House on 22 December
2020 at which time the Company became a company registered in England and
Wales.
Following the departure of the United Kingdom from the European Union on 31
December 2020, the Company automatically became a UK European Company and its
name automatically changed to 4basebio UK Societas. Following approval from
the Annual General Meeting of 30 June 2021 for conversion of the Company to a
public limited company, this was recorded with Companies House on 20 July
2021, with the company number changing to 13519889.
The Company is domiciled in England and the registered office of the Company
is 25 Norman Way, Over, Cambridge CB24 5QE. 4basebio PLC is the parent of a
group of companies (together, “the Group”). The Group focusses on life
sciences and in particular the development of synthetic DNA and nanoparticles
suitable for inclusion in, or delivery of, therapeutic payloads for gene
therapies and gene vaccines.
The Company trades on London Stock Exchange’s AIM market, having been
admitted on 17 February 2021. The international securities number (ISIN)
number for its AIM traded shares is GB00BMCLYF79; its ticker symbol is 4bb.l.
2. Basis of preparation
The consolidated financial statements of 4basebio UK PLC (or “the Group”)
for the financial year ending 31 December 2021 have been prepared in
accordance with UK adopted International Accounting Standards and applicable
law.
The following new standards were mandatory for adoption for periods ending
31 December 2021; however, these standards do not affect the Group:
* Interest Rate Benchmark Reform – Phase 2: Amendments to IFRS 9, IAS 39,
IFRS 7, IFRS 4 and IFRS 16
* Covid-19-Related Rent Concessions (Amendments to IFRS 16)
The Group has not early adopted any other standard, interpretation or
amendment that has been issued but is not yet effective and they are not
expected to have a material impact on the Group financial statements.
3. Going concern
The directors have, at the time of approving the financial statements, a
reasonable expectation that the Group has adequate resources to continue in
operational existence for 12 months from the date of approval of the financial
statements. Thus, they continue to adopt the going concern basis of accounting
in preparing the financial statements.
4. Earnings per share
2021 2020
Numerator [in £‘000]
Result for the period (3,235) (719)
Denominator [number of shares]
Weighted average number of registered shares in circulation (ordinary shares) for calculating the undiluted earnings per share 12,317,473 9,197,913
Diluted and Undiluted earnings per share (0.26) (0.08)
4basebio PLC (formerly 4basebio UK Societas) was incorporated on 11 October
2019 with issued share capital of 120,000 ordinary shares. On 11 November
2020, a further 3,575,242 ordinary shares were issued for cash. On 8
December 2020 a further 8,622,231 ordinary shares were issued in consideration
for the acquisition of 4basebio S.L.U. and 4basebio UK Limited (formerly
4basebio Limited).
The calculation of the basic and diluted earnings per share for continuing
operations was based on the weighted average number of shares as determined
above. The numerator is defined as result after tax from continuing
operations. The average number of share options outstanding during the
period was 522,860 which have not been included in the calculation of the
diluted earnings per share because they would be anti-dilutive since the
business is loss making.
5. Approval of the financial statements
The financial statements were approved by the board of directors and
authorised for issue on 6 May 2022.
The above summary has been extracted from the report and accounts and,
accordingly, references to notes and page numbers may be incorrect.
Shareholders are advised to read the full version of the report and accounts
which will be available from the Company’s website.
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