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DJ Formation Group Plc Investment in Proton Partners International Limited

 
TIDMFRM 
 
FORMATION GROUP PLC 
 
                        ('Formation' or the 'Company') 
 
              Investment in Proton Partners International Limited 
 
On 28 February 2017, Formation announced a profit share agreement with London 
(North) Properties Limited ("LNPL") and Pinnacle Developments Limited in 
relation to a development property at 34 Wembley Hill Road, Wembley ("Profit 
Share Agreement"). As part of this Profit Share Agreement, the Company advanced 
a loan of GBP5 million as finance for the development. 
 
On 5 November 2017, LNPL agreed to sell its interest in 34 Wembley Hill Road to 
Peabody Enterprises Limited ("Peabody") (the "Sale Agreement") and thereafter 
to construct and deliver 198 finished apartments to Peabody. LNPL will also 
retain two commercial units on 250-year leases as part of this agreement and 
these will constitute part of LNPL's profit. Peabody are obliged to provide 
agreed levels of funding towards the development process of this site. 
 
Sufficient deposits under the Sale Agreement have now been released to LNPL to 
enable it to repay its bank borrowings and the GBP5 million loan to the Company. 
Formation continues to retain its entitlement to a 40% share of the profits 
generated on this development as part of the Profit Share Agreement. 
 
Formation announces that on 6 March 2018 the Company used the GBP5 million 
returned under the Profit Share Agreement to acquire 4,347,826 ordinary shares 
in Proton Partners International Limited ("PPI"), equivalent to 3.44% of PPI's 
issued share capital. Following this investment, Formation has the right to 
appoint a director to the Board of PPI. 
 
PPI is a private company (www.Proton-int.com), founded in February 2015, which 
is presently leading the way for Proton Beam Therapy in the UK, with one 
operational centre in South Wales and further centres nearing completion in 
both North East England and the Thames Valley. A Proton treatment unit is also 
scheduled to be operational in Abu Dhabi by 2019. It is anticipated that these 
and further centres to be developed will become hubs of excellence for advanced 
cancer treatment. 
 
To address the growing worldwide demand for more specialised cancer care, PPI 
plans to develop and operate a network of Proton Beam Therapy Cancer Centres, 
in the UK and international markets, so that cancer patients can receive the 
best possible care without needing to raise large amounts of money to obtain 
Proton Beam Therapy abroad. 
 
The Directors believe that PPI has large growth potential in an undersupplied 
market, as the NHS and health insurance companies increasingly recognise the 
importance of Proton Beam Therapy in the treatment of cancer and are prepared 
to fund such treatments for their patients. 
 
Since its inception in 2015, PPI has demonstrated its ability to operate 
effectively in a specialised market place, having successfully acquired land 
and built treatment centres. The Directors believe that PPI's expansion to date 
has been planned and delivered in an organised and efficient manner by a 
professional management team and operating structure, utilising the company's 
own cash resources and only very limited bank borrowing. They further believe 
that Formation's investment in PPI diversifies the focus of the Company's 
business, into a relatively low risk sector, with the potential for rapid and 
profitable growth. 
 
The directors of the Company accept responsibility for the contents of this 
announcement. 
 
                                   --ENDS-- 
 
Enquiries: 
 
Formation Group plc                                        Tel: +44 (0) 20 7920 7590 
David Kennedy, Chief Executive Officer 
 
Peterhouse Corporate Finance Limited (Corporate Adviser)   Tel: +44 (0) 20 7469 0930 
Fungai Ndoro and Mark Anwyl 
 
 
 
END 
 

(END) Dow Jones Newswires

March 14, 2018 08:44 ET (12:44 GMT)