4basebio Plc - Final Result and Notice of AGM

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	[phone]
Heikki Lanckriet, CEO
	[phone]
Cairn Financial Advisers LLP (Nominated Adviser)
Jo Turner / Sandy Jamieson
finnCap Ltd (Broker)
Geoff Nash/Richard Chambers/Charlotte Sutcliffe	[phone]

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.