Tag: WDC

WideCells Group PLC (LON: WDC) has today announced that it has created a division encompassing a new media and technology business focussed on providing online marketing, content and technology driven products. The Board intends to propose a change of name of the Company to Iconic Labs plc.

To this effect, two new executive directors are joining the Board with immediate effect: John Quinlan as CEO and Liam Harrington as CBO who were instrumental in growing UNILAD into the world’s most viewed and largest social first publisher. The Company has also appointed additional non-executives, to bring important strategic insights, details of which are below.

Highlights

· New media and technology business focused on providing online marketing, content and technology driven products

· Experienced management with proven track record drawn from key individuals at UNILAD, the world’s largest social media publisher

· Cash flow focussed business model with pre-identified contracts, an identified path to profitability and exceptional growth prospects

· Taking advantage of structural change in the online market through proprietary technology and the team’s exceptional insights and network

· Well positioned and with funding to enable rapid organic growth and active roll-up strategy

· Substantial historic liabilities in the process of being settled and resolved

Executive Chairman, David Sefton, said:

“Iconic Labs represents an exceptional opportunity for this Company. The skills and experience of the team in the new media marketing space, as shown through their track record at UNILAD, the world’s largest social first publisher, can deliver an exciting and uniquely positioned business. The growth of this market is accelerating at an unprecedented pace; global mobile ad spend is projected to increase from US$138 billion in 2018 to US$212 billion in 2021. The team has the model to capitalise on this.

“We are also highly focused on shareholder returns and value creation and have worked with the team to develop a robust plan which manages costs, so that they are driven by increases in revenue whilst at the same time maintaining high growth. Both the Board and the team are committed to achieving net positive free cashflow this year. Finally, we will continue to support the development of the stem cell services business from a solid footing and will invest on a scheduled, drip fed basis, against achieving milestones on a new, careful development plan and at the same time resolving substantial historical liabilities built up by Wide Cells. Iconic Labs can also help with the education and information challenges of Wide Cells.”

New Iconic Labs CEO John Quinlan said:

“We understand how to build a business and generate revenue in the new media space. We have a unique proposition, in an extraordinarily high growth area. On the back of revenue growth from pre identified contracts in our Agency Consultancy division, we will roll-out a range of services, content and cutting-edge technology that target future generation audiences and establish a leading position in the new media sector. Exciting times are ahead; we’re going to grasp every opportunity to build a business that creates value for our clients, ourselves and our shareholders.”

OVERVIEW

Iconic Labs is a new media and technology business focussed on providing online marketing, content and technology driven products to allow companies to increase consumer engagement and create iconic brands. Leveraging the team’s unique knowledge and expertise of content and technology gained from their time at UNILAD, which achieved revenues in excess of £10 million per annum, the Company aims to deliver best-in-class consultancy advice, products, content, marketing and distribution for its clients.

Iconic Labs operates in a dramatically growing market which is driven by several key changes within the industry: consumer habits shifting to digital and social from TV and print; increasing numbers of distribution platforms all fighting for premium content to attract audiences; and traditional agencies struggling to adapt to client demands and new technologies. As examples, global mobile ad spend is projected to increase from US$138 billion in 2018 to US$212 billion in 2021, while SVOD services rose from 14% of households in 2014 to 39% in 2018.

The Board has recognised the team’s key differentiators to capitalise on this space which include: its network of developers, influencers and creators within the space who understand what moves the dial to create trends; experience in consumer data interpretation and insights, and critically its understanding of technology and a platform agnostic approach that utilises all tools at its disposal, as well as its ability to identify consumer trends and what makes an app, content or product go viral.

Iconic Labs will roll-out six complementary divisions over a phased period to ensure multiple revenue streams:

· Agency Consultancy – a consultancy business advising companies looking to use social media tools and technology to better engage with consumers and key stakeholders.

· Online Publishing Brands – focused on creating, incubating or acquiring strong, distinct brands known for original content and with multi-platform distribution channels.

· E-Commerce – focused on using existing distribution channels and social media tools to sell a variety of products online.

· Content Licensing – focused on licensing User Generated Content (‘UGC’) created by users who have posted it to social media.

· Content Studio – the establishment of a production studio to create original video formats that are tested on social media and further developed for viewing on TV and Subscription Video on Demand (‘SVOD’) platforms such as Netflix.

· Tech Product Development – focused on developing unique, innovative and forward-thinking products in fast growth sectors.

The initial phase during the first 6-12 months will comprise the launch of the Agency Consultancy division, which the Board believes is quickly scalable and will drive early, high-margin, recurring revenues. As experts at utilising social media platforms and the associated tools, as well as understanding how technology drives and changes a consumer’s behaviour, this division will assist clients (via advertising agencies and directly) with creating and developing brands. This is achieved by establishing marketing and communications strategies that help build audiences and direct revenue generation and social platform monetisation. Simultaneously, the Company will build its distribution and publishing division through organic and inorganic growth, after which it will launch the Content Licensing and E-Commerce divisions followed by the video production division.

The Board believes that most businesses could benefit from Iconic Labs’ knowledge and expertise on social platforms as well as user behaviour to build market penetration. The first target clients will be those who want to attract a future generation and millennial audience as well as those which currently spend significant amounts on ineffective TV advertising, when they should be focused on social media or alternative social platforms. To this end, the team has strong relationships with key publishers and leading brands and anticipates building its client list aggressively.

The team is led by John Quinlan, who is joining the Board as CEO, Liam Harrington as CBO and Sam Asante as COO. They all have wide experience and proven track records in operating in the new media arena, particularly with UNILAD, which they were instrumental in growing into the world’s most viewed and largest social first publisher, with over 40 billion video views and 1 billion engagements in 2017.

To support this team, the Company has assembled a Board with the relevant industry, corporate and financial experience to ensure future growth, including Executive Chairman, David Sefton, and Non-Executive Director, Richard Thompson. Newly appointed Non-Executive Directors include Will Muirhead, Xavier Latil and Rodolphe Cadio.

Will Muirhead is currently Chief Executive of Rocket Sports Internet Limited, an operator of football news websites and social media accounts, Will formed his first business, SportEV, at Edinburgh University in 1999, which developed the technology to power some of the original OTT/SVOD services.

Xavier Latil is the CEO of The Blockchain Group and is a highly experienced executive and entrepreneur with experience in technology, digital communication and e-commerce, communications, marketing and publishing. He also brings considerable experience in managing high growth companies and in particular their international expansion and with his experience and network can significantly help the company and the new management team, in particular with strategic advice.

Rodolphe Cadio is a qualified accountant with considerable board level experience, including currently at Intrasense, Eyelixiby and Clever Cloud. Rodolphe understands the technology and media sectors and will in addition to strategic and sectoral advice, assist the management team in establishing robust and effective financial controls as well as helping to ensure that proper public company financial reporting processes are put in place.

WideCells Group PLC (LON:WDC), the healthcare services group focused on providing stem cell services and ground-breaking insurance for stem cell treatment, has today announced that its stem cell healthcare insurance subsidiary, CellPlan, has signed a partnership agreement with a leading international stem cell extraction and storage company, Smart Cells.

Under the terms of the agreement, Smart Cells, which has offices in Europe, Africa, Middle East, Asia and the Far East, will offer CellPlan’s innovative insurance plan to its 60,000 clients across multiple geographies. The staged roll-out will commence in Spain within the next four weeks, followed by the UK and then worldwide. With CellPlan operations already in place in Spain and the UK CellPlan can commence stem cell insurance sales soon, unlocking revenue from Smart Cell’s existing and new client base.

WideCells Group plc CEO, João Andrade, said, “We are delighted to be working closely with Smart Cells, which is a well-established and respected global company, to enhance its offering with our unique stem cell treatment insurance plan and increase CellPlan’s own profile worldwide. This is a seminal deal for CellPlan, in line with our corporate strategy focused on building revenue growth and delivering accessible and affordable cell treatments to more people.”

Smart Cells CEO, Shamshad Ahmed, said, “I believe that this partnership will be mutually beneficial for both companies and especially useful for our clients all over the world. I look forward to cooperating with CellPlan and working together on the global rollout of re-enhanced services.”

WideCells Group PLC (LON:WDC), the healthcare services company focused on providing stem cell services and ground-breaking insurance for stem cell treatment, has today announced that following the Group’s recent placing, Align Research has released an update note with a Conviction Buy stance.

The note covers the significant progress made by the Group in regulatory and commercial developments, overview of the rapidly growing stem cell market, use of funds from recently closed placing and Align’s forecasts for the Group’s future growth potential.

WideCells Group – Initiation of coverage
Stem cell services specialist set for rapid acceleration in revenues in a fast growing medical market
WideCells Group is a Main Market listed healthcare services company focused on growing in the burgeoning market for stem cell services. Over the past few years, management have built up an integrated stem cell services provider, focused on providing products which make stem cell treatments accessible and affordable.

Significant progress made in regulatory and commercial developments
Following significant progress made since IPO in July 2016 and the launch of several products, WideCells is now on the cusp of rapid revenue growth. Across three divisions the company can now offer an end-to-end service via the storage and processing of umbilical cord blood and tissue, stem cell insurance, stem cell research work and training and learning for healthcare professionals and the general public.

Stem cell markets growing rapidly
A 2017 report from Transparency Market Research suggests that the total global market for stem cells is expected to grow at a CAGR of 13.8% from 2017 to 2025 to become worth $270.5 billion by 2025.

Placing and bookbuild provide funds to accelerate growth
WideCells has finalised a £1.871 million placing, including a £164,951 debt conversion, bringing the aggregate value to the group of the placing to £2.036 million gross. Net proceeds receivable will be approximately £1.641 million. The funds will provide the company with general working capital and the firepower to accelerate product development and roll-out across its three divisions.

Indicative forecasts show huge growth potential
WideCells has huge potential for growth over the coming years. Applying a 20% tax charge to our FY2020 forecast operating profits would put the shares on a price/earnings multiple of just 1.1 times. Recognising the early stage nature of the business, but considering the very low valuation should indicative forecasts be met, we initiate coverage of WideCells with a stance of Conviction Buy and initial price target of 12p representing a conservative 5 times multiple for 2020 reflecting the risks involved.

RISK WARNING & DISCLAIMER
WideCells is a research client of Align Research. Align Research owns shares in WideCells. For full disclaimer information please refer to the last page of the full document. This investment may not be suitable for your personal circumstances. If you are in any doubt as to its suitability you should seek professional advice. This note does not constitute advice and your capital is at risk. This is a marketing communication and cannot be considered independent research.

WideCells Group PLC (LON:WDC), the healthcare services company focused on providing stem cell services and ground-breaking insurance for stem cell treatment, has today provided the following update on its financial position.

As announced on 5 June 2018, the Group has received placing commitments for gross proceeds of at least £1.8 million and has released its audited results for the year ended 31 December 2017. The Directors have calculated that the Group needs to raise a minimum of £1.5 million to enable the Group to continue to operate as a going concern. Completion of the Placing will satisfy the working capital requirements of the Group. The Directors anticipate that completion of the Placing will take place before the end of June 2018, in line with the Group’s announcement on 10 May 2018.

Should the Placing not complete in accordance with its terms by 29 June 2018, or alternative funding found, the Group would not be able to continue trading as a going concern and would be obliged to cease operations which could include administration, receivership, liquidation or other insolvency proceedings.

Additionally, the Group provides the following updates regarding its financial position.

There have been significant changes in the financial condition, trading position and operating results of the Group subsequent to 31 December 2017 (being the date to which the most recent audited results for the Company were prepared) and these are listed below.

As at 8 June 2018, the latest practicable date when preparing this information, the Group had a net bank overdraft, after offsetting positive cash balances, of £614,533 against an overdraft facility of £624,500 which is due to be reviewed on 29 June 2018.

In order to assist it with managing its current working capital requirements, the Group has:

· since 1 January 2018, arranged interest free loans from Directors of approximately £120,000. Such loans are repayable on demand after 1 July 2019;

· negotiated payment terms with existing trade creditors;

· negotiated terms with its banks to extend its facilities; and

· revised its current growth plans downwards and cut back on all discretionary expenditure to conserve cash.

WideCells Group Plc will update the market with the next steps in the completion of the Placing in due course.

WideCells Group PLC (LON:WDC), the healthcare services company focused on providing stem cell services and ground-breaking insurance for stem cell treatment, announced today its audited preliminary results for the period ended 31 December 2017. Copies of the full Annual Report will be posted to shareholders and will be available to view on the Corporate Documents section of the company’s website.

HIGHLIGHTS

· Launched a portfolio of stem cell services designed to make stem cell treatments accessible and affordable worldwide

· Focused on driving global sales and revenues across the Group’s three divisions

o Innovative insurance product CellPlan, the world’s first insurance plan and medical concierge service for the cord blood stem cell industry

* Secured a number of commercial agreements with stem cell banks to facilitate roll-out and launched a bespoke e-commerce platform

* Fully live in the UK with initial sales secured as part of a test launch to customers of Biovault, a leading storage facility

* Launch in Spain anticipated

* Agreements in place to launch in Thailand, Singapore, India and Brazil in H2 2018

o Stem cell storage and pioneering research work continues, operated via WideCells’ state-of-the-art Institute of Stem Cell Technology (ISCT) in Manchester, UK

* Awarded Human Tissue Authority (HTA) research licence July 2017 to undertake paid-for-research work on stem cell therapy and regenerative medicine – three projects already secured, which are collectively worth ~£300,000

* Includes government-backed Innovate UK Knowledge Transfer Partnership with Manchester Metropolitan University to undertake research on a new form of stem cell technology in March 2018.

* Granted HTA Human Application licence in February 2018, which enabled launch of BabyCells, offering umbilical cord stem cells processing and storage services

* Additional upside via sale of INDUS, a novel synthetic bone graft which promotes new bone formation – became a licenced provider in July 2017, and sales commenced in Q4 2017

o Stem cell education and training division Wideacademy

* Advanced from vision to commercialisation, with revenue generation on track to commence in H2 2018

* First phase of bespoke platform launched February 2018, with full commercial launch targeted for H2 2018

* Spearheaded by Former Director of Education at Apple, Alan Greenberg

· Strengthened board and management team to drive new phase of revenue growth and created a Scientific Advisory Committee to continue to drive product development

· Recognised industry leader – won and been nominated for several awards:

o Ranked 21 in the Global DISRUPT 100 list, showing potential to influence, change and create new global markets

o Won Power Business of the Year at The Manchester Awards 2017

o Won CorporateLiveWire – Healthcare and Life Sciences Awards 2017, showing excellence in stem cell research services

o Nominated for the UK Life Science IPO of the year

· Current cash position anticipated to be bolstered through placing and live bookbuild to raise at least ~£1.80 million

o Raised aggregate gross proceeds of approximately £1.4 million in two separate private placings since the Initial Listing in July 2016

o The Live Market Bookbuild remains open and the Group will update the market in due course.

CHAIRMAN’S REVIEW

I am delighted to be part of this ground-breaking company and deliver my inaugural statement as its Chairman; the prospects of WideCells Group truly excite me. Through our three divisions, we are focused on making stem cell treatment affordable and accessible for families around the world. To this end, 2017 was a year of building both our service offerings and our partnerships with key players to position the Group as a multi-revenue generative opportunity in a fast-growing sector. This resulted in an inflection point with first revenues generated before the year end.

We believe that the stem-cell sector is reaching a tipping point in terms of the market’s understanding of its potential to treat rare and life-threatening conditions; the global stem cell market is currently valued at c.US$96 billion and is predicted to grow to US$170 billion by 2020 and US$270.5 billion by 2025, implying a CAGR of 13.8%. We are proud to be recognised as an intrinsic part of this medical revolution.

Our integrated stem cell support services proposition includes: CellPlan, the first-of-its-kind stem cell insurance plan; WideCells, our storage focused division leading the way in the development and use of cell banking services; and Wideacademy, which is driving education and awareness on the stem cells sector. Each division made significant advances during the year as outlined below.

As testimony to our commitment to both innovation and education, in June 2017 the Group was ranked as the 21st most disruptive company globally by DISRUPT 100, an annual index celebrating the businesses with the most potential to influence, change or create new global markets. More recently, post period end, our CEO, João Andrade, was awarded the CEO Europe Award 2018 by CEO Today Magazine.

CellPlan

CellPlan has developed the world’s first stem cell healthcare insurance plan and medical concierge service, designed to revolutionise stem cell healthcare by making stem cell transplants affordable for families who require treatment for life threatening diseases.

During the year, it made significant advances bolstering its innovative offering to create new revenue opportunities and expand its service globally. It secured an agreement with Biovault Technical Ltd, the UK’s largest private human tissue storage facility, to roll-out CellPlan to Biovault’s client base. Additionally, it launched its e-commerce platform, www.cellplan.com, which allows WideCells to sell CellPlan directly to families, whether existing or new clients.

Although the UK stem cell market is comparatively small, our initial launch in the UK has enabled us to trial our offering. The aim is now to roll CellPlan out internationally and include additional product offerings over time. We are preparing to launch in Spain imminently, and in support of this have secured an agreement with Stem Cell Banco Celulas Madre, S. A., an established provider of stem cell storage services, to offer CellPlan to its clients, and will also launch our e-commerce platform to ensure maximum market penetration. A definitive agreement has also been secured with Hemocord Clinica Medica Ltd in Brazil, a world-class leader in cord blood storage, which is set to provide CellPlan access to the largest cord blood storage market in South America, a market projected to be worth US$445 million by 2023.

In March this year WideCells announced a landmark deal with Cryoviva Group, an established cord blood storage facility with operations in Thailand, Singapore and India, to sell CellPlan in Asia. Cryoviva has c.250,000 inspected samples stored to-date which represents almost 9% of all samples stored worldwide, with forecasts to store c.25,000 new samples every year. CellPlan will be launched to Cryoviva customers on a phased basis, commencing in H2 2018, providing staged revenue increases.

Finally, with our storage division WideCells having recently launched BabyCells, an umbilical cord blood and tissue storage service which is available to clients in the UK and Europe, additional synergistic growth opportunities are available for CellPlan, as one year’s stem cell insurance cover will be included as part of the initial storage package. It is our hope and expectation that this will lead to ongoing uptake and revenue generation for CellPlan, whilst also giving a competitive advantage to our storage services.

WideCells

WideCells offers stem cell procurement, processing, retrieval and storage services in the UK and Europe. Through WideCells Brasil, it also operates a stem cell laboratory in São Paulo, Brazil, licensed by the Brazilian regulatory authority, the Agência Naciónal de Vigilância Sanitáría (ANVISA).

WideCells has established its own storage and processing facility, called the Institute of Stem Cell Technology (‘ISCT’) based at the University of Manchester Innovation Centre in the UK, which is well positioned to capture an increasing share of the cord blood banking market in the UK and Europe. This provides the Group with exposure to a fundamental part of the market; 4 million cord blood samples are currently held in storage in 500 facilities across the world and this is increasing by 250,000 a year.

Whilst the Group had been offering umbilical cord stem cells processing and storage services through a third-party storage facility under its BabyCells brand in Portugal between 2014 and early 2015, it was only post period end in February 2018 that WideCells was awarded a Human Application Licence by the UK’s Human Tissue Authority. This licence permits the Group to procure, import, export, process, store and distribute for treatment, umbilical cord blood and umbilical cord tissue from the UK and Europe at our ISCT facility in Manchester, UK. This transformational milestone licence enables the Group, under the brand name BabyCells, to offer affordable umbilical cord blood and tissue storage services at the highest standards to clients in the UK and Europe. Our focus is now on promoting client-uptake and we are actively looking for agents, initially focusing on Europe, to promote our stem cell storage services. In support of this, we believe we have a very strong product offering, as alongside offering clients state-of-the-art storage services, new BabyCells clients will be given a year’s stem cell insurance cover, provided by our CellPlan division.

Going forward, WideCells intends to add additional stem cell services such as dental pulp processing and storage (TeethCells) and Adipose tissue collection, processing and storage (LipoCells) to increase the Group’s stem cell storage product offering. Furthermore, during the year under review, WideCells secured a licence to provide INDUS, a novel synthetic bone graft which promotes new bone formation. The Group commenced selling this new product in the UK in Q4 2017, initially targeting the dental industry, with obvious potential for further roll out internationally.

Alongside our cryogenics facility at the ISCT, we have a state-of-the-art laboratory which allows us to undertake pioneering paid-for research projects to support the continued development of the stem cell industry. Our leading stem cell scientists have, for example, been appointed by Qigenix, a California-based clinical stage medical device company, to undertake research on its behalf, testing a new laser technology designed to increase the homing and integration of stem cells. By supporting development, we ensure we remain at the fore of the stem cell industry.

WideAcademy

Spearheaded by Alan Greenberg, the former Director of Apple Education, Wideacademy, the Group’s education and training division, is focused on promoting best-practice and quality, whilst driving innovation and supporting sales of insurance and stem cell storage for CellPlan and WideCells divisions. By helping people to understand this growing industry from multiple perspectives and angles, Wideacademy will help drive the uptake of our other products and services and in turn investment across the entire sector, which ultimately, could save many lives. The platform, which combines free-to-access educational areas with paid-for premium digital tools and resources for doctors and medical professionals, was launched post period end and is already receiving excellent feedback.

Going forward, we intend to add additional functionality, including access to educational modular courses that can support Continual Professional Development (‘CPD’) for medical professionals. The Group is currently in discussions with a number of universities and educational organisations to refine its planned courses and CPD offering. Wideacademy also intends to launch a diseases & treatment section in H1 2018, to provide more detailed information on specific illnesses.

Corporate

During the year, several corporate changes were undertaken to reflect the Group’s transition from product development into a revenue-generative, international provider of stem cell services. Accordingly, we have brought together individuals of outstanding quality who have proven track records in the stem cell industry and financial sector.

Directorship appointments included: Alan Greenberg, previously Vice President of Wideacademy and a Group Non-Executive Director, who became Senior Vice President of Wideacademy, a Group Executive Director and Group Chief Business Development Officer; Malcolm Glaister, who has held a number of management roles across a broad spectrum of leading investment and trading businesses and joined as a Non-Executive Director; and myself as Non-Executive Chairman, having previously held several senior directorship positions with both large and small companies in the insurance, healthcare and IT industries. As part of these board changes, Dr. Graham Hine, my predecessor as Chairman, retired from his board role; I would like to thank him for all his work and support in helping advance the Group to a point of international growth and development.

Post period end, David Henriques, who has significant asset management and corporate finance experience, and is involved with the digitalisation of insurance products, was appointed to the Board as a Non-Executive Director. He replaced Mr. Zakaria Aziz who stepped down from his position as Non-Executive Director.

A new Scientific Advisory Committee consisting of leading figures in the industry was also appointed. Responsible for identifying and advising the Board on new developments within the stem cell sector, the Committee will ensure that we continue to address market demand and offer the most competitive and innovative portfolio of services.

Finally, post-period end, investors will be aware that trading in our shares was suspended. This was a result of a delay in publishing our final results for 2017 pending completion of the audit process, which in turn could not be completed as we were in discussions with our financial advisers with a view to a fundraising.

Having received commitments in respect of approximately £1.47 million via a placing, and with a live market bookbuild underway due to bolster this further, we have been able to successfully conclude the auditing of our annual accounts. In light of this, we are working with the Financial Conduct Authority to achieve a lifting of the suspension following the publication of our results.

I would like to assure shareholders that despite the delay in publishing accounts and subsequent trading suspension, all business operations have continued to operate as usual and our growth prospects remain strong. Our focus is firmly on achieving the commercial roll-out of our stem cell services to build revenues and ultimately drive the value of our business.

Financial Overview

We successfully raised £1.4 million before expenses in two placings in 2017. This has enabled us to set up our operations for WideCells and Wideacademy in Manchester and for CellPlan in Porto and we are on target to grow sales in 2018.

Outlook

We are now focused on growth and the commercial roll-out of products and services across all three divisions. As well as our existing regions, we are exploring opportunities in the Asia-Pacific territories, where the stem cell industry is gaining increasing profile. Our preeminent team and staff are leading the world in this exciting sector and with their support, I anticipate steady growth during the year.

To conclude, I would like to take this opportunity to thank our shareholders who provide ongoing support and look forward to updating our progress on a regular basis.

Peter Presland

Non-Executive Chairman

CHIEF EXECUTIVE’S STATEMENT

Stem cell therapy is gaining increasing recognition for its life-saving potential in a wide-range of medical applications. 82 illnesses can currently be treated using stem cell procedures, and developments in its use in illnesses such as cystic fibrosis, cerebral palsy, diabetes and autism have caught the headlines of late. As the value potential of this innovative treatment advances, more and more people are becoming aware of the benefits of storing stem cells, which in turn is driving additional development and advancement in the industry. This is accordingly an opportune time to be building a leading position within the stem cell industry and having successfully launched our first of its kind end-to-end stem cell service that covers storage, insurance, research and education/training, we are now focused on achieving global roll-out to build revenues, drive development and ultimately ensure that all people, regardless of geography or financial position, have access to stem cell treatment.

Through first-hand experience, I have identified both the value potential and the limitations of the industry in which we operate. In terms of value potential, we are focused on cord blood, taken from the umbilical cord following birth, as we believe it is the most useful and best “quality” source of stem cells and it is an area of rapid growth, with more than 250,000 samples being stored per annum and growing fast. However, looking at the limitations, whilst over 4,000,000 people have stored cord blood with over 500 cord blood bank companies that exist worldwide, paying c.£2,000 to do so, many do not realise that if treatment is needed costs could climb to as high as £300,000, making it unaffordable for many. It is because of these limitations and strong growth dynamics that we have created our end-to-end stem cell service.

At the core of this offering is our highly innovative CellPlan product – the first global stem cell insurance package. This provides access to stem cell specialists and hospitals, covering the whole family for up to £/€1 million worth of medical, travel and accommodation expenses worldwide for an affordable £150-£300 per annum. With CellPlan live in the UK and strategic agreements in place to launch in Spain, Brazil, Thailand, India and Singapore in the coming year it is clear to see that our focus is now on achieving roll-out on a commercial scale. Of course, critical to stem cell treatment is stem cell storage and so alongside CellPlan, we are delighted to have recently launched our own stem cell storage services at our state of the art facilities at the Institute of Stem Cell Technology in Manchester, UK. Following landmark licensing approval from the Human Application Licence in February 2018, our BabyCells service, offering umbilical cord blood and tissue storage services to clients in the UK and Europe, is now live and we are accordingly focused on promoting uptake. BabyCells will be charged at a cost of circa £2,000 per sample for one year’s storage (including collection and processing), with recurring storage revenues of £50-£75 per annum thereafter and alternative multi-year pre-paid storage plans. Clients of BabyCells will be also offered one year’s stem cell insurance cover, provided by CellPlan, highlighting the synergistic offering of our tripartite business model.

The final string to our offering is education and training focused services, delivered through a bespoke online platform – Wideacademy – of which we launched the first stage in February 2018. Being spearheaded by the former Director of Apple Education, Alan Greenberg, Wideacademy is committed to utilising the power of education to support stem cell uptake across all levels of the industry, with revenue opportunities available through educational tools and courseware targeted at medical professionals.

Looking ahead, it is clear to see that 2018 is set to be incredibly active for WideCells Group. Having successfully launched all three divisions/services, our primary focus is now on driving product update to deliver strong recurring revenues and realise meaningful value for our investors, whilst providing our clients with an affordable and quality product offering that provides them with life-saving medical cover for them and their family, now and for many years to come. In line with our commitment to being at the fore of the rapidly growing global stem cell industry, we maintain an active growth strategy and will continue to target strategic opportunities that provide our company with value uplift opportunity, but our first and foremost focus is on building the profile and global reach of our innovative stem cell services.

João Andrade

Chief Executive Officer

WideCells Group PLC (LON:WDC), the healthcare services company focused on providing stem cell services and ground-breaking insurance for stem cell treatment, has today announced that it has signed an agreement with Cryoviva Group (‘Cryoviva’), an established cord blood storage facility with operations in Thailand, Singapore and India, to sell its unique stem cell insurance product, CellPlan, in Asia.

DirectorsTalk caught up with CEO João Andrade to discuss this deal which you can listen to here.

Highlights

· CellPlan, the innovative stem cell insurance plan, to be launched in Asia following agreement with Cryoviva

· Cryoviva has established operations in Thailand, Singapore and India, and today has almost 250,000 inspected samples stored to-date with forecasts to store c.25,000 new samples every year

· Agreement provides CellPlan with exposure to a new geography, building upon recent contracts in Europe and South America

· Provides exposure to a high growth region: the global stem cell market is expected to register a CAGR of 13.8% from 2017 to 2025, with the Asia-Pacific market expected to grow at higher CAGR of 14.6%

· CellPlan will be launched to Cryoviva customers on a phased basis, commencing in H2 2018, providing staged revenue increases

WideCells Group Plc CEO, João Andrade, said, “With over 250,000 clients, established operations in three countries and around 25,000 new samples being stored every year, this deal with Cryoviva is set to transform the revenue profile of our company. Our innovative insurance product has the potential to revolutionise the stem cell market by making treatment much more affordable. This strategic agreement with Cryoviva will enable us to launch CellPlan in one of the fastest growing stem cell markets where there is clear demand for stem cell services. By implementing a staged roll-out model, we are able to ensure the stable growth of our operations in each country and provide a solid base for continued growth.”

Dr. Chaitanya Nerikar, the Group CEO of Cryoviva stated, “We strongly believe that our agreement with CellPlan will allow Cryoviva to continue to be the premium provider of services related to stem cell banking to its clients. Cryoviva and CellPlan intend to jointly strive to establish an insurance product that will go beyond its initial coverage for treatments related to cord blood stem cells and cover other innovative therapies and treatments using other types of stem cells, which will gradually become acceptable by the global medical community, thus underlining Cryoviva’s commitment to be the Bank of Life, and a Lifeline for a Lifetime to its clients.”

About CellPlan

CellPlan is a completely unique and a first of its kind insurance product that aims to transform the stem cell industry by making stem cell treatment affordable and accessible globally. Through an average cost of £170 per annum, families that have stored their stem cells are able to protect themselves from the often-unforeseen costs of treatment, which can be as much as £300,000.

CellPlan’s product offering comprises four primary services:

· “Your Expert Consultation” service, which comprises a panel of experts in stem cell transplantation able to review a patient’s case regardless of location and provide the right diagnosis and treatment plan;

· “Your Medical Certainty”, which provides a comprehensive summary of the patient’s case and identifies a selection of treatment centres where the patient can access treatment globally;

· “Your Global Resource”, which is a medical concierge service, whereby CellPlan handles the full treatment process, including any travel requirements, hospital admission and transportation of the stem cell sample, allowing patients to concentrate on getting well; and

· “Your Family protection”, where CellPlan provides cover for up to £/$/€1m (depending on the location) of medical, travel and accommodation bills.

WideCells Group PLC (LON:WDC), the healthcare services company focused on providing stem cell services and ground-breaking insurance for stem cell treatment, has today announced that its 100% owned stem cell storage and research division, WideCells Ltd, has been granted a government-backed Innovate UK Knowledge Transfer Partnership with Manchester Metropolitan University (MMU) to undertake research on a new form of stem cell technology. As part of this three-year research project, Innovate UK will provide £156,000 worth of funding towards a total project cost of £234,000.

The new technology allows specialised adult cells such as skin cells to be genetically reprogrammed to assume a stem cell-like state and accordingly be used in stem cell treatment and in the study of disease. These stem cells, known as induced pluripotent stem cells (iPSCs), could revolutionise the stem cell industry by making stem cells, and subsequently stem cell treatments, much more accessible. Following the research project, WideCells hope to have advanced iPSCs to a point of commercialisation so that the technology can be included in the Group’s end-to-end stem cell service offering.

Testament to the pioneering nature and potential value of the research project is the support received from Innovate UK, a government-backed public body that is committed to driving growth by working with companies to de-risk, enable and support innovation, particularly science and technology developments that it believes will drive future economic growth. Out of the 33 proposals that were chosen to be supported by Innovate UK, WideCells and MMU’s project was ranked fifth. Innovate UK will provide £52,000 per annum in funding for the three-year project and WideCells Group will provide £26,000 per annum.

A post-doctoral scientist will be employed and based in WideCells facilities in Manchester to carry out the research under the supervision of Professor Peter Hollands, WideCells Group Chief Scientific Officer, who is a leading figure in the global stem cell industry, and Professor Tristan McKay from MMU.

WideCells Group CEO, João Andrade, said, “The granting of this government-backed Innovate UK Knowledge Transfer Partnership is testament to the quality of our research work and the leading role we’re playing in the stem cell industry. By supporting the continued development of the industry, we help to ensure that our end-to-end stem cell service, which includes our unique stem cell insurance product, Cellplan, remains relevant to the market.”

WideCells Group PLC (LON:WDC), the healthcare services company focused on providing stem cell services and ground-breaking insurance for stem cell treatment, has today announced that the UK’s Human Tissue Authority (“HTA”) has awarded its 100% owned subsidiary, WideCells Ltd, a Human Application Licence. This licence permits WideCells Ltd to import, export, process, store and distribute for treatment, umbilical cord blood and umbilical cord tissue from the UK and Europe in its state of the art facilities at the Institute of Stem Cell Technology in Manchester, UK.

This transformational milestone licence enables the Group, under its brand name BabyCells, to offer umbilical cord blood and tissue storage services to clients in the UK and Europe. BabyCells will be charged at a cost of circa £2,000 per sample for one year’s storage (including collection and processing), with recurring storage revenues of £50-£75 per annum thereafter and alternative multi-year pre-paid storage plans. Clients of BabyCells will be offered one year’s stem cell insurance cover, provided by the Group’s CellPlan division.

WideCells Group Plc CEO, João Andrade, said, “The granting of this licence from the HTA marks a significant step in the Group’s end-to-end stem cell service solution. WideCells Group can now store and process umbilical cord blood and tissue, provide financial cover and support for associated treatment through our innovative CellPlan insurance product, and support development and medical advancement within the industry through both our research work, and our education and training division Wideacademy. This licence enables us to leverage further our significant industry contacts and market presence to position our state of the art facility in Manchester as a leading stem cell storage bank. The Group is now positioned to focus on revenue generation from all three of our divisions.”