REG - Abingdon Health PLC - Settlement agreement signed with the DHSC

Abingdon HealthAnnouncement

28/06/2022 10:45

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20220628:nRSb4557Qa&default-theme=true

RNS Number : 4557Q  Abingdon Health PLC  28 June 2022

 

Abingdon Health plc

("Abingdon" or "the Company")

 

Settlement agreement signed with the Department for Health and Social Care

 

York, U.K. 28 June 2022: Abingdon Health plc (AIM: ABDX), a leading
international developer and manufacturer of high quality and effective rapid
tests, notes recent bulletin board speculation and the rise in its share
price.

 

The Company confirms that it has reached a settlement agreement with the
Department for Health and Social Care ("DHSC") on the outstanding invoices
payable by DHSC for lateral flow tests and component stock.

 

The Company notes that the settlement agreement only technically completes as
and when the cash payment referred to below is received.

 

The settlement agreement is in full and final settlement of the outstanding
debt of £8.9m (excluding interest) and comprises:

 

i)           A contractually required cash payment of £6.3m from DHSC to
Abingdon, which is required to be paid to the Company on or before 22 July
2022; £1.5m of this cash payment will be held under charge until the outcome
of the judicial review is known; and

ii)         transfer to the Company of ownership of the outstanding
component stock that it had procured on behalf of DHSC in 2020/1; and

iii)           joint-ownership, alongside DHSC, of the intellectual
property of the AbC-19™ COVID-19 antibody test; and

iv)          a lower royalty payable to DHSC on sales of the AbC-19™
COVID-19 antibody test, with this royalty time limited to one year from the
date of the settlement agreement.

 

The monies received from DHSC, once received, will provide additional working
capital and be deployed to help fund the Company's various growth initiatives
underway.

 

This announcement contains inside information for the purposes of Article 7 of
the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law
by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is
disclosed in accordance with the Company's obligations under Article 17 of
MAR.

 

Enquiries:

 

 Abingdon Health plc                                                                 www.abingdonhealth.com/investors/ (http://www.abingdonhealth.com/investors/)
 Chris Yates, Chief Executive Officer                                                Via Walbrook PR
 Melanie Ross, Chief Financial Officer
 Dr Chris Hand, Non-Executive Chairman

 Singer Capital Markets (Sole Broker and Nominated Adviser)                          Tel: +44 (0)20 7496 3000
 Peter Steel, Alex Bond (Corporate Finance)
 Tom Salvesen (Corporate Broking)

 Walbrook PR Limited                                    Tel: +44 (0)20 7933 8780 or abingdon@walbrookpr.com
                                                        (mailto:abingdon@walbrookpr.com)
 Paul McManus / Phillip Marriage  Mob: +44 (0)7980 541 893 / +44 (0)7867 984 082
 Alice Woodings                   Mob: +44 (0)7407 804 654

About Abingdon Health plc

 

Abingdon Health is a world leading developer and manufacturer of high-quality
rapid tests across all industry sectors, including healthcare and COVID-19.
Abingdon is the partner of choice for a growing global customer base and takes
projects from initial concept through to routine and large-scale manufacturing
and has also developed and marketed its own labelled tests.

 

The Company offers product development, regulatory support, technology
transfer and manufacturing services for customers looking to develop new
assays or transfer existing laboratory-based assays to a lateral flow
format.  Abingdon Health aims to support the increase in need for rapid
results across many industries and locations and produces lateral flow tests
in areas such as infectious disease, clinical testing including companion
diagnostics, animal health and environmental testing. Faster access to results
allows for rapid decision making, targeted intervention and can support better
outcomes. This ability has a significant role to play in improving life across
the world. To support this aim Abingdon Health has also developed AppDx(®), a
customisable image capturing technology that transforms a smartphone into a
self-sufficient, standalone lateral-flow reader.

 

Founded in 2008, Abingdon Health is headquartered in York, England.

 

For more information visit: www.abingdonhealth.com
(http://www.abingdonhealth.com/)

 

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  MSCFPMLTMTJTMFT