News blog

Sigma Capital

BY: Andrew Hore |
POSTED: 19/04/2009 |

Sigma Capital is spinning off its university IP commercialisation subsidiary Frontier IP into a Plus-quoted shell.

Frontier IP is not valued in the Sigma balance sheet but the deal will place a valuation on it. The deal is expected to increase Sigma’s net asset value per share by 7.5p to 23.4p.

Sigma’s holding in Frontier IP would be worth £3.5m. At 10p a share, Sigma is valued at £4.68m.

Plus-quoted ARH Leisure Investments is buying the Frontier IP business and it will change its own name to Frontier IP after the deal. Sigma will be issued 350m shares at 1p each in return for the business.

ARH joined Plus-quoted on 21 September 2007, when it raised £390,000 before expenses. A fund raising will generate a further £633,000 before expenses. Sigma will subscribe for a further 35m shares in the placing at 1p a share. That should leave the company with cash of nearly £1m. The deal should be completed on 12 May 2009, following a Sigma EGM to pass the deal on the previous day. Sigma will end up with 77.4% of Frontier IP

Frontier IP has a 10-year partnership with the University of Dundee and 25-year partnership with Robert Gordon University. Frontier IP will help these universities to commercialise technologies in return for share in any spin-offs and a share of licensing revenues. Frontier IP plans to develop relationships with other universities.

Sigma will continue to provide strategic advice and financial and other services. Sigma’s corporate development director Jackie McKay will continue to develop new and existing relationships for Frontier IP. Sigma’s finance director will also be part-time finance director

Sigma says that its 2008 results will be ahead of expectations. A loss of £500,000 had been expected. The figures will be reported on 30 April 2009.

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