Reduction of Capital ...

Reduction of Capital ...

Reduction of Capital ...

 

Reduction of Capital ...


Released: 24/09/2003
Biocompatibles International PLC 24 September 2003 24 September 2003 BIOCOMPATIBLES INTERNATIONAL PLC ('Biocompatibles' or the 'Company') HIGH COURT CONFIRMS REDUCTION OF CAPITAL Biocompatibles International plc (LSE:BII), the medical device company focused on the treatment of cardiovascular disease, cancer and benign tumours, is pleased to announce that the High Court today approved the Company's application to reduce its share premium account by approximately £11.5million. The amount of 25 pence per share will be paid in the week commencing 6 October 2003 to shareholders on the register at the close of business on Friday, 26 September 2003. Following market close on 26 September, a subdivision and consolidation of the existing ordinary shares will take place to allow comparability with the share price before implementation of the repayment of capital. Accordingly, shareholders on the register at the close of business on Friday, 26 September 2003 will receive 11 new ordinary shares for every 13 existing ordinary shares then held and the number of new ordinary shares in issue immediately following consolidation will be 38,255,624. The new ordinary shares will replace the existing ordinary shares and be identical in all respects to those shares, save in respect of their nominal value which will increase from 16 1/9 pence to 19 4/99 pence. In order to facilitate the consolidation of share capital, Nomura International, the Company's brokers, will also subscribe for 7 newly issued ordinary shares of 16 1/9 pence each prior to the consolidation of share capital. It is intended that the CREST accounts of shareholders who hold their existing ordinary shares in uncertificated form will be credited with the new ordinary shares on Monday, 29 September 2003. Shareholders who hold their existing ordinary shares in certificated form are expected to be sent a new share certificate in the week commencing 6 October 2003. It is expected that dealings in the existing ordinary shares will cease at the close of business Friday, 26 September 2003 and that admission of the new ordinary shares will become effective and dealings will commence on Monday, 29 September 2003. Swag Mukerji, Biocompatibles' Finance Director, said: 'We continue to make good progress in our strategy to exploit our unique biomedical technologies and to secure worthwhile growth in shareholder value through sound financial management and the return of excess capital. 'This latest High Court approval means we can now move swiftly to return 25p per share to our shareholders.' A further reduction of capital was approved by the Company's shareholders on 26 June 2003. This was conditional upon the release of £35.1 million, held in approximately equal amounts in escrow and restricted bank accounts, put in place as part of the sale of Biocompatibles' Cardiovascular Stent business to Abbott Laboratories in March 2002. As was announced on 16 September 2003, a positive step has been made in the litigation by Isostent LLC against Biocompatibles and other parties when Abbott Laboratories agreed to release Biocompatibles from its obligation to maintain £17.6m in a restricted bank account. This was further to the settlement with Isostent announced by Biocompatibles in March 2003. £17.6 million continues to be held in escrow pending conclusion of the litigation between the remaining parties. Upon the conclusion of that litigation and the release of the escrow account, Biocompatibles will then apply to the High Court for a further repayment to its shareholders of £11.1 million, the equivalent of up to approximately 29p per new ordinary share post consolidation. The precise amount will depend upon the actual number of new ordinary post consolidation shares issued at the time of the High Court application. Contact: Biocompatibles Swag Mukerji, Finance Director Tel: +44(0)1252 732732 The Maitland Consultancy Brian Hudspith Tel: +44 (0)20 7379 5151 The Trout Group Christine Labaree Tel: +1 781 685 2934 Biocompatibles International plc Biocompatibles is a medical device company focused on the treatment of cardiovascular disease, cancer and benign tumours. The Company's proprietary biomedical polymer systems provide medical devices with enhanced biocompatibility and offer a platform for drug delivery. Further information is available at www.biocompatibles.com. This information is provided by RNS The company news service from the London Stock Exchange

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