11 May 2022
4basebio plc
("4basebio", the "Company" or the “Group”)
Final Results,
Notice of AGM and Related Party Transaction
The Board of 4basebio plc is pleased to report the results for the
financial year ended 31 December 2022.
The annual report and accounts together with a notice of the
Company’s annual general meeting, which is to be held on
14 June 2023 at 9:00am in the offices of 4basebio plc 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
16 June 2023 at 10am. Investors can sign up to Investor Meet
Company for free and register interest here:
https://www.investormeetcompany.com/4basebio-plc/register-investor.
The Company further advises that, on 10
May 2023, it amended the terms of its loan facility with
2Invest AG, a significant shareholder, which it entered into on 2
November 2020. Further details of the related party
transaction are included below.
- First commercial revenues from DNA
- First commercial revenues from Hermes™ non-viral vectors
- Clean rooms for manufacture of GMP DNA commissioned
- Six novel patent filings between January
2022 and February 2023
- Continued growth with headcount increasing to 61 staff from 33
at the beginning of the year
4basebio plc is a Cambridge UK
based AIM-quoted holding and service company for the 4basebio group
of companies (“the Group”), which includes manufacturing and
research and development subsidiaries across Cambridge, UK and Madrid, Spain.
4basebio is engaged in the research and development, manufacture
and commercialisation of synthetic DNA and RNA products and
targeted non-viral vector solutions. With its first revenues from
these activities during 2022, the Group is now focussed on the
scaling of its commercial activities across a range of gene therapy
and vaccine applications, with a particular focus on mRNA and AAV
markets.
The Group is able to offer its customers application specific
solutions; it also continues to invest in research and development
activities to further develop its technology platforms and expand
its product offering.
Dr Heikki Lanckriet, CEO and
CSO for 4basebio, said: “2022 has been a very exciting year for
4basebio, with the first commercial revenues from its synthetic DNA
and Hermes™ platforms, completion of its manufacturing clean rooms,
filing of fresh intellectual property and the overall growth is
size and capabilities of the group. The group will continue
to develop its platforms and is now also focussed on its commercial
development with increasing revenue a key objective.”
For further enquiries, please contact:
4basebio
plc |
+44 (0)12 2396
7943 |
Heikki Lanckriet, CEO |
|
|
+44 (0)20 7213
0880 |
Cairn Financial Advisers LLP
(Nominated Adviser) |
|
Jo Turner / Sandy Jamieson |
|
|
|
finnCap Ltd (Broker) |
|
Geoff Nash/Richard
Chambers/Charlotte Sutcliffe |
+44 (0)20 7220
0500 |
|
|
Lionsgate Communications (Media
Enquiries) |
|
Jonathan Charles |
+44 (0)77
91892509 |
Chairman’s statement
Performance
During the course of 2022, 4basebio made significant progress in
the commercialisation of its platform technologies and the
strengthening of the Group’s research and development,
manufacturing and business development capabilities.
4basebio secured commercial validation of its technologies
through first revenues of both its synthetic DNA and Hermes™
non-viral vectors, an important step on which it continues to
build.
Alongside that, the Group commissioned its manufacturing clean
rooms, offering seven manufacturing suites with an overall capacity
of three hundred customer batches per year, and able to manufacture
at GMP grade (“good manufacturing practice”).
The continued commercial development of the business is
naturally a key objective. Alongside this, the Board
considers there to be significant intrinsic value in the Group’s
intellectual property and it remains a key focus with continued
investment in its platforms. To that end, six new patent
applications were filed during between January 2022 and February
2023, with further filings expected in 2023. The Group
also appointed a Director of Intellectual Property to focus on this
aspect.
With the objectives outlined above, the Group continued to
invest during 2022 with a resultant net loss for the year of £5.2
million. As in 2021, recruitment was a key priority both in
research and development and manufacturing teams and with overall
headcount of 61 at year end. The Group continues to recruit
into roles within commercial, research and development and
manufacturing.
4basebio will be loss making during 2023 and the Group will
utilise its loan facility with 2Invest AG, a major shareholder and
former parent company, to fund activities. Immediately, prior
to year end, 4basebio drew down an initial €2million from this loan
facility and it will continue to draw down further tranches in
2023.
Strategy
4basebio’s principal objective is to become a leading provider
of synthetic DNA and RNA products and non-viral delivery technology
for the cell and gene therapy and vaccines markets. In order
to achieve this, the Group is focussed on differentiating its
product and technology solutions from existing alternatives.
This differentiation is achieved by developing novel, highly
flexible and widely applicable platform technologies which in turn
provide optimised products and solutions for individual
customers.
4basebio’s payload and delivery platform technologies are
synergistic and enable offering of integrated services to
customers, as appropriate, by incorporation of client specific
nucleic acid payloads in delivery solutions tailored to client
needs. Consequently, the Group offers a wide range of solutions for
customers depending on their application needs. 4basebio seeks to
establish early development stage relationships with its
customers. The Group anticipates that early revenues will be
derived from selling research grade and HQ grade synthetic DNA
products used in early stage therapy discovery and preclinical
development.
As customers progress their programs into the clinic, larger
quantities of the higher quality standard 'GMP product’ will be
required and in due course, 4basebio expects this will lead to
significant GMP manufacturing batches. The Group is therefore
focussed on engaging with as many potential customers as possible,
recognising there may be a degree of attrition as individual
clients may be unable to progress their clinical development
program.
Share Price
Consistent with 2021, the share price experienced some
volatility during the year. The directors believe this in
part reflects the modest trading volumes which consequently can
have a relatively large impact on the price. During the
course of the year about 4% of shares in issue changed hands, with
a typical daily trading volume of 2,000 shares.
At year end, approximately 68% of the Company’s shares were
closely held between the Company’s two largest shareholders and
Board directors. The Board believes that a significant
portion of the remaining shares is owned by long term
shareholders.
The share price opened the year at 615p, before it softened in
the middle of the year, reaching a closing price of 460p.
From there it increased to 710p at year end. The Board
recognises that an increase in liquidity is desirable and continues
to consider how this might be achieved.
People and Culture
4basebio places great emphasis on creating a positive and
supportive workplace centred around its people and the science.
Currently, over 75% of 4basebio’s workforce hold scientific
degrees, with a third holding PhDs. This fosters an
environment focussed on problem solving, innovation and
progress.
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
2022
|
|
|
|
|
|
[in
£‘000] |
|
2022 |
|
2021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
|
|
|
268 |
|
338 |
Cost of
goods sold |
|
|
|
(29) |
|
(69) |
Gross
profit |
|
|
239 |
|
269 |
|
|
|
|
|
|
|
|
Sales and
marketing expenses |
|
|
|
(245) |
|
(132) |
Administration expenses |
|
|
(2,711) |
|
(1,725) |
Operation
expenses |
|
(928) |
|
0 |
Research
and non-capitalised development expenses |
|
(2,081) |
|
(1,622) |
Other
operating expenses |
|
(181) |
|
(400) |
Other
operating income |
|
67 |
|
83 |
Loss
from operations |
|
(5,840) |
|
(3,527) |
|
|
|
|
|
|
|
|
Finance
expense |
|
|
|
(89) |
|
(113) |
Financial result |
|
|
|
(89) |
|
(113) |
|
|
|
|
|
|
|
Loss
before tax |
|
|
|
(5,929) |
|
(3,640) |
|
|
|
|
|
|
|
|
Income tax
income / (expense) |
|
|
|
779 |
|
405 |
|
|
|
|
|
|
|
Loss
for the year |
|
|
|
(5,150) |
|
(3,235) |
|
|
|
|
|
|
|
Items
that may be reclassified to the income statement in subsequent
periods |
|
|
|
|
|
Exchange
differences on translation of foreign operations |
|
447 |
|
(608) |
|
|
|
|
|
|
Total
comprehensive income |
|
|
(4,703) |
|
(3,843) |
|
|
|
|
|
|
|
|
|
|
|
|
Loss
per share |
|
|
|
|
|
|
Basic and
diluted (in £/share) |
|
|
(0.42) |
|
(0.26) |
|
|
|
|
|
|
|
|
|
|
All of the loss for the year is from continuing operations.
Consolidated statement of financial position
31 December 2022
[in £’000] |
|
|
|
|
2022 |
|
2021 |
|
|
|
|
|
|
|
|
Assets |
|
|
|
|
|
|
|
|
|
|
Intangible
assets |
|
2,124 |
|
1,271 |
Property,
plant and equipment |
|
3,633 |
|
2,759 |
Other
non-current assets |
|
35 |
|
30 |
Non-current assets |
5,792 |
|
4,060 |
|
|
|
|
|
Inventories |
|
133 |
|
156 |
Trade
receivables |
|
54 |
|
46 |
Other
current assets |
|
1,359 |
|
854 |
Cash and
cash equivalents |
|
4,351 |
|
9,586 |
Current
assets |
5,897 |
|
10,642 |
|
|
|
|
|
|
|
|
Total
assets |
|
11,689 |
|
14,702 |
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
|
|
Financial
liabilities |
|
(415) |
|
(432) |
Trade
payables |
|
(490) |
|
(353) |
Other
current liabilities |
|
(613) |
|
(738) |
Current
liabilities |
|
(1,518) |
|
(1,523) |
|
|
|
|
|
Financial
liabilities |
|
(2,935) |
|
(1,326) |
Other
liabilities |
|
(116) |
|
(158) |
Non-current liabilities |
|
(3,051) |
|
(1,484) |
|
|
|
|
|
Total
liabilities |
|
(4,569) |
|
(3,007) |
Net
assets |
|
7,120 |
|
11,695 |
|
|
|
|
|
Share
capital |
|
11,130 |
|
11,130 |
Share
premium |
|
706 |
|
706 |
Merger
reserve |
|
688 |
|
688 |
Capital
reserve |
|
13,307 |
|
13,179 |
Foreign
exchange reserve |
|
14 |
|
(433) |
Profit and
loss reserve |
|
(18,725) |
|
(13,575) |
Total
Equity |
|
7,120 |
|
11,695 |
|
|
|
|
|
|
|
Consolidated statement of changes in equity
for the year ended 31 December
2022
[in £‘000] |
Share
capital |
Share
premium |
Merger
reserve |
Capital reserve |
Foreign exchange reserve |
Profit
and loss reserve |
Total
equity |
Balance at 1
January 2022 |
11,130 |
706 |
688 |
13,179 |
(433) |
(13,575) |
11,695 |
Loss for the year |
- |
- |
- |
- |
- |
(5,150) |
(5,150) |
Foreign Exchange
difference arising on translation of 4basebio S.L.U. |
- |
- |
- |
- |
447 |
- |
447 |
Share based
payments |
- |
- |
- |
128 |
- |
- |
128 |
Balance at 31
December 2022 |
11,130 |
706 |
688 |
13,307 |
14 |
(18,725) |
7,120 |
[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 |
Consolidated statement of cash flows
for the year ended 31 December
2022
|
|
|
|
|
|
[in
£’000] |
|
|
2022 |
|
2021 |
|
|
|
|
|
|
Net
loss for the period |
|
|
(5,150) |
|
(3,235) |
Adjustments to reconcile net loss for the period to net
cashflows |
|
|
|
|
Income
taxes |
|
(779) |
|
(405) |
Interest
charge |
|
|
89 |
|
113 |
Depreciation of property, plant and equipment |
|
404 |
|
242 |
Amortisation and impairment of intangible assets |
|
27 |
|
78 |
Other
non-cash items |
|
136 |
|
12 |
Working
capital changes: |
|
|
|
|
|
(Increase)/decrease in trade receivables and other current
assets |
140 |
|
(126) |
|
Increase/(decrease) in trade payables and other current
liabilities |
|
(2) |
|
615 |
|
(Increase)/decrease in inventories |
|
30 |
|
(34) |
Tax
receipt |
|
401 |
|
- |
Net
Cash flows from operating activities |
|
(4,704) |
|
(2,740) |
|
|
|
|
|
Investments in property, plant and equipment |
(1,155) |
|
(884) |
Investments in capitalised development and intangible assets |
|
(786) |
|
(628) |
Cash
flows from investing activities |
|
(1,941) |
|
(1,512) |
|
|
|
|
|
Net
receipt/(payment) of loans |
|
1,412 |
|
(331) |
Interest
paid |
|
(93) |
|
(76) |
Capital
lease payments |
|
(75) |
|
(60) |
Cash
flows from financing activities |
|
1,244 |
|
(467) |
|
|
|
|
|
Net change
in cash and cash equivalents |
|
(5,401) |
|
(4,719) |
Exchange
differences |
|
166 |
|
(696) |
|
|
|
|
|
Cash
and cash equivalents at the beginning of the period |
|
9,586 |
|
15,001 |
Cash
and cash equivalents at the end of the period |
|
4,351 |
|
9,586 |
|
|
|
|
|
|
|
|
|
Notes to the financial statements
1. General
4basebio plc (the “Company” or “4basebio”) is registered in
England and Wales with company number 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.
The consolidated financial statements of 4basebio plc and its
subsidiaries for the year ended 31 December
2022 were authorised for issue in accordance with a
resolution of the directors on 10 May
2023.
2. Basis of preparation
The consolidated financial statements of 4basebio UK plc (or
“the Group”) for the financial year ending 31 December 2022 have been prepared using UK
adopted international accounting standards.
The consolidated financial statements for 2022 and 2021 comprise
the results of 4basebio plc, 4basebio S.L.U., 4basebio UK Limited
and 4basebio Discovery Limited for the whole year.
The above summary has been extracted from the report and
financial statements and, accordingly, references to notes and page
numbers may be incorrect. Shareholders are advised to read the full
version of the report and financial statements which will be
available from the Company’s website.
3. Going concern
The directors have, at the time of approving the financial
statements, a reasonable expectation, taking into account the
unutilised existing loan facility with 2Invest AG, a shareholder in
4basebio plc, referred to in note 22, that the Group has adequate
resources to continue in operational existence for at least 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
|
2022 |
2021 |
Numerator [in
£‘000] |
|
|
Result for the
period |
(5,150) |
(3,235) |
Denominator
[number of shares] |
|
|
Weighted average
number of registered shares in circulation (ordinary shares) for
calculating the undiluted earnings per share |
12,317,473 |
12,317,473 |
|
|
|
Basic and diluted
earnings per share |
(0.42) |
(0.26) |
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 642,878 (2021: 522,860)
which have not been included in the calculation of the diluted
Earning 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 10 May
2022.
Related Party Transaction
On 2 November 2020, the Company
entered into a loan agreement with 2Invest AG (“2Invest”) (formerly
4bb AG) pursuant to which the Company could draw down up to €25
million at any time prior to 31 October
2026. Details of the loan agreement are included in the
Company’s admission document published on 12
February 2021.
On 10 May 2023, the loan facility
was amended by reducing the available facility by €2 million in
consideration for extending the repayment date. As a result,
the loan facility with 2Invest, which is denominated in Euros, is
now for up to €23 million which can be drawn, with notice, at the
discretion of 4basebio plc until 31 October 2026. Interest is
charged at 5% per annum on all loan amounts outstanding and
compounds annually on all loan tranches outstanding. The
capital and interest are now due to be repaid in a single payment
on 31 October 2028. Early repayment is permitted. No other
fees are due under this facility.
As a result of 2Invest being a significant shareholder, the
amendment of this agreement constitutes a related party transaction
pursuant to Rule 13 of the AIM Rules for Companies.
With the exception of Hansjörg Plaggemars, a director of the
Company and 2Invest, the directors of the Company, having consulted
with the Company's Nominated Adviser, Cairn Financial Advisers LLP,
consider the terms of the Transaction to be fair and reasonable
insofar as the Company’s shareholders are concerned.