ARIX BIOSCIENCE PLC Incentive Shares At the Arix Group's inception, an Executive Share Option Plan was in operation, in which two Directors participated. Options were granted on 8 February 2016 with an original exercise price of GBP1.80 per ordinary share. This was subsequently amended for one Director, with the exercise price reducing by GBP0.18. The number of ordinary shares subject to the options totals 5,520,559. The options vested in four equal proportions on 8 February of 2017, 2018, 2019 and 2020. The options may not be exercised after the tenth anniversary of the grant date and it will lapse on that date if it has not lapsed or been exercised in full before then. All options vest at the end of the vesting period relating to that option or on the occurrence of a contingent event; these include a change of control or cessation of employment in accordance with 'good leaver' provisions. No options have been exercised to date. In the year ended 31 December 2020, a share-based payment charge of GBP26k (2019: GBP567k) was recognised in relation to the Executive Share Option Plan, calculated using the Black-Scholes model. Assumptions used in the model relating to the risk free interest rate and expected volatility were unchanged from those used in the prior period. Restricted shares with identical terms, including a GBP1.80 price for the lifting of restrictions, were offered to the founders of the Company, totalling 5,080,582 shares. A charge of GBPnil was recognised in the year ended 31 December 2020 (2019: GBP179k). The charge was calculated using the Black-Scholes model. Assumptions used in the model relating to the risk free interest rate and expected volatility were unchanged from those used in the prior period. Non-Executive Director Awards
Pursuant to their respective letters of appointment, certain Non-Executive Directors received a one-off share award during the year; a share based payment charge of GBP50k (2019: GBP70k) was recognised during the period. 19. Net Cash From Operating Activities
Year Ended Year Ended
31 December 31 December
2020 2019
GBP'000 GBP'000
Profit/(loss) before income tax 126,301 (75,568)
Adjustments for:
Change in fair value of investments (135,297) 62,435
Foreign exchange losses/(gains) 1,619 650
Share-based payment charge 25 2,790
Depreciation and amortisation 335 446
Impairment of assets 167 1,259
Finance income (101) (769)
Changes in working capital
(Increase)/decrease in trade and other receivables (272) 1,068
Increase/(decrease) in trade and other payables 390 (1,553)
Cash used in operations (6,833) (9,242) 20. Financial Commitments The Group has amounts committed to portfolio companies but not yet invested; at 31 December 2020 these totalled GBP9.3m (2019: GBP8.5m). 21. Financial Instruments Financial Assets
The Arix Group has other receivables and cash that derive directly from its operations. Financial assets at fair value through profit or loss are measured as either Level 1 or Level 3 under the fair value hierarchy, as described in Note 2(i) and disclosed in Note 11.
Year Ended Year Ended
31 December 31 December
2020 2019
GBP'000 GBP'000
Financial assets at fair value through profit or loss
Equity and loan note investments 154,416 151,921
Other receivables (excluding prepayments) 1,130 771
Long-term cash on deposit 62,276 -
Cash and cash equivalents 112,085 54,638 The credit quality of financial assets that are neither past due nor impaired can be assessed by reference to external credit ratings (if available) or to historical information about counterparty default rates. The Arix Group's cash and cash equivalents are deposited with F1 or above rated institutions. Investments and other receivables do not have a credit rating. However, the Group does not believe these to be past due nor impaired. Financial Liabilities
The Arix Group's principal financial liabilities comprise trade and other payables. The primary purpose of these financial liabilities is to finance the operations.
Year Ended Year Ended
31 December 31 December
2020 2019
GBP'000 GBP'000
Trade, other payables and accruals (excluding non-financial liabilities) 2,235 6,154
Lease liability 268 956 22. Guarantees The Company has provided a rent deposit guarantee in respect of its former US office, now classified as an Investment Property, for an amount of USD261,657, (GBP196,088), unchanged from 2019. 23. Related Party Transactions
During the period, key management has comprised Executive Directors, whose remuneration is disclosed in the Directors' Remuneration Report; and other members of the executive team. These other members received short-term employee benefits of GBP760,010 in the year (2019: GBP371,834, relating to the period in which they were fulfilling key management responsibilities). 24. Events After the Reporting Date
In January 2021, USD5.5m (GBP4.0m) was realised from Imara, Inc. Arix's stake in the company now totals 5.8%.
On 11 January 2021, Harpoon Therapeutics, Inc. closed a public offering raising USD115m. Arix did not participate; its stake in the company now totals 6.9%.
On 12 February 2021, Autolus Therapeutics plc closed a public offering raising USD115m. Arix did not participate. Post-period end, Arix realised USD16.4m (GBP11.7m) from Autolus Therapeutics plc. Its stake in the company now totals 1.6%.
On 24 February 2021, Arix invested a further EUR2.7m (GBP2.4m) in Depixus; its stake in the company now totals 21.4%.
In March 2021, Quench Bio opted to wind down after concluding its research activities. Arix anticipates receiving proceeds of USD0.5m-USD1.0m upon conclusion of the wind down.
On 5 March 2021, Arix invested its remaining USD0.7m (GBP0.5m) commitment in Aura Biosciences; its stake in the company now totals 7.9%.
Following market purchases since 31 December 2020, Arix's stake in GenSight Biologics now totals 4.4%.
In March 2021, it was announced that the United Kingdom's main rate of corporation tax will rise from 19% to 25% from April 2023. As this rate has not been substantively enacted at the balance sheet date, deferred tax balances in these financial statements continue to be measured at 19%. -----------------------------------------------------------------------------------------------------------------------
[1] Gross portfolio, including FX
[2] Reflects changes to ownership percentage since 31 December 2020 due to company capital raisings and/or market transactions -----------------------------------------------------------------------------------------------------------------------
ISIN: GB00BD045071 Category Code: ACS TIDM: ARIX LEI Code: 213800OVT3AHQCXNIX43 OAM Categories: 1.1. Annual financial and audit reports Sequence No.: 95092 EQS News ID: 1174034 End of Announcement EQS News Service =------------------------------------------------------------------------------------
(END) Dow Jones Newswires
March 09, 2021 02:01 ET (07:01 GMT)
