Update on partial sale of CSS shareholding to CGV
Contingent consideration of £1.5m from partial CSS stake sale triggered by achievement of 25,000 unit orders.
- Contingent consideration payment £1.5m
- Book value of CSS holding before £41.0m
- Book value of CSS holding after £47.8m
- Orders and commitments achieved 25,000+ smart pillows
- Anticipated orders from licensees 75,000+ units
- Roadside stake in CSS 47.8%
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Roadside (AIM: ROAD) is pleased to announce an update to its 1 October 2024 announcement relating to the partial stake sale of its investment in Cambridge Sleep Sciences ("CSS") to CGV Ventures 1 Ltd. ("CGV") (the "Transaction").
The Transaction provided for a £1.5 million contingent consideration to be paid to Roadside upon CSS receiving dispatch notices for, in aggregate, 25,000 smart pillows for dispatch on or before 11.59 pm on 31 March 2025.
The Company is pleased to confirm that CSS has satisfied the terms of the contingent consideration, with orders and commitments of more than 25,000 units across multiple channels. Consequently, the Company expects CGV to pay the additional £1.5 million in the first half of Q2 2025.
As a result of the contingent consideration being paid, the book value of the Company's holding in CSS has increased from £41.0 million to £47.8 million. Upon receipt, the funds will be used to repay part of the Company's borrowings.
CSS business update
Following the launch of the Mammoth Smart Pillow in October 2024, CSS is now negotiating with a number of potential full licensees for its smart pillow and smart mattress technology across Europe, North America and the Middle East, having progressed through an evaluation license stage. Management anticipates orders in excess of 75,000 units arising from these licensees. In addition, the company's Smart Mattress technology is expected to launch later this year.
Charles Dickson, Executive Chairman, said:
"I'm delighted that the team at CSS has continued to successfully grow its licensee base, securing commitments and sales comfortably beyond targets.
"We have long believed in the efficacy of CSS's technology and were pleased to have this confirmed by a recent clinical trial which found that SleepEngineTM technology is proven to improve the quality of users' sleep.
"The results of the trial will help CSS to increase its business development momentum, giving us optimism in the company's near-term growth prospects."
About Cambridge Sleep Sciences Ltd
Cambridge Sleep Sciences Ltd, is a legacy Life Sciences investment in which Roadside Real Estate plc holds a 47.8% interest. CSS develops technology which improves natural sleep. Using the principles of neuroscience and cutting-edge technology to enhance brain activity during sleep, its innovative solutions aim to improve health, wellbeing and enhance quality of life.
Find out more at: www.cambridgesleepsciences.com
Cleaned text: letterheads, contacts and legal notices removed. View the original announcement ↗ · Company filings. Not investment advice.