NEW YORK (GenomeWeb News) — As expected, a group of Tripos senior executives will buy the company’s Discovery Research subsidiary for £548,000 ($1.1 million), according to a binding letter of intent the company filed with the US Securities and Exchange commission on April 12.
The company said in March that if a planned sale of the business to Provid Pharmaceuticals were to fall through then some of its management might buy the group themselves.
According to the April 12 filing, Thomas Mander, vice presidents business development, Simon Cole, vice president of strategic alliances, and Mark Allen, vice president of finance and managing director, will acquire the segment.
The officials will pay £348,000 in cash for “certain existing receivables of the business” and £200,000 at the close of the sale.
Tripos had earlier expressed concern that Provid would not be able to find the financing it needed to complete the purchase. Two weeks ago, Trpos nixed the sale, which was estimated to be worth around $2 million.
According to the SEC filing, the Tripos officials may look to sell the company to a third party buyer.
The LOI will expire on April 26, meaning that the officials must execute a definitive agreement by that time.
Tripos said the deal will be subject to “a number of conditions,” including consents from those leasing equipment from the business and the sale and leaseback of the Discovery Research property to the South West of England Regional Development Agency.
The buyers also must repay the British government for economic development grants.