Oncimmune Eases Going-Concern Risk With Sale of Two Subsidiaries for GBP13 Mln

By Anthony O. Goriainoff

Oncimmune Holdings said Monday that it has sold subsidiaries Oncimmune Ltd. and Oncimmune Europe GmbH for 13 million pounds ($16.2 million) in cash to Freenome Holdings, and that this alongside debt repayment has removed the material uncertainty regarding it remaining a going concern.

The London-listed immunodiagnostics developer said it will use proceeds from the sale to repay debt and that the board considered this, together with the net proceeds from the sale, removes “any material uncertainty as regards going concern.”
The company said that in connection with the sale it has agreed to repay 7.2 million euros ($7.8 million) on its IPF Management SA facility of EUR11.6 million. It added that it has entered into a new debt facility for the outstanding EUR6.0 million in which the principal amount is repayable over the next three years.
The company said the transaction was structured as consideration for equity and debt repayment of which GBP1.3 million in cash is held in escrow for 12 months in case “of any claim by Freenome against the customary warranties and indemnity given to Freenome in the sale and purchase agreement.”
The company said it will continue to operate the ImmunoINSIGHTS business primarily through its subsidiary Oncimmune Germany GmbH.
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Write to Anthony O. Goriainoff at [email protected]