Revenue generation commences with milestone binding agreement with White Apex
News Release | Widecells Group
WideCells Group PLC, the healthcare services company focused on providing stem cell services and ground-breaking insurance for stem cell treatment, is pleased to announce that further to the announcement released on 11 October 2017, it has signed binding five-year agreements with multi-sector advisory business White Apex General Trading (‘White Apex’), effective 31 October 2017. Accordingly, the Group’s end-to-end stem cell services are now available for purchase and being promoted in the Middle East and North Africa (including Turkey) (‘MENA’) and Asia-Pacific (excluding China) territories (the ‘Territories’).
• Binding agreement with White Apex to transform revenue and value potential of WideCells Group
• £255,000 payable to WideCells Group immediately – for initial set up of WideCells stem cell collection and dispatch services and sponsorship of Wideacademy subscriptions for 2,000 doctors per year for three years
• Multi-million pound recurring revenues expected from all three divisions:
o CellPlan – sale of innovative stem cell insurance product
o WideCells – sale of stem cell storage and INDUS synthetic bone products
o Wideacademy – sale of subscriptions to the educational platform (2,000 doctors already subscribed) and educational / training accreditation
• Further £1,500,000 potentially payable for the adaptation of Wideacademy’s innovative educational platform for use in MENA and Asia-Pacific regions:
o £250,000 potentially to be paid by the end of the year, to be followed by two additional payments of £250,000 due for the next two years thereafter, for MENA adaptation
o £250,000 potentially to be paid the end of Q1 2018, to be followed by two additional payments of up to £250,000 due for the next two years thereafter, for Asia-Pacific adaptation
• Established a regional office in Dubai to facilitate commercial roll-out – led by Dr. Ahmed Al-Alawi, a pre-eminent stem cell scientist with notable corporate experience and regional connections
WideCells Group CEO, João Andrade, said, “We are delighted to have finalised this landmark agreement with White Apex and accordingly now be selling our innovative stem cell services and regenerative health products in the MENA and Asia-Pacific regions. This is a multi-million-pound deal: with £255,000 payable to us immediately and significant recurring revenues expected to commence thereafter from all three of our divisions, this sales agreement is set to transform our company. Stem cells are revolutionising the medical world, and as we build our global reach we are also able to promote and support the development of this rapidly growing area of medicine so that more and more people can benefit from and have access to this potentially life-saving treatment.
“White Apex make the perfect partner for us. Thanks to their unrivalled regional experience and connections within the MENA and Asia-Pacific territories, we are able to rapidly build our global presence and commercial reach. Furthermore, having strengthened the terms of the binding agreement compared to those agreed in the initial heads of terms, their belief in the value of our proposition is clear: the agreement has been extended from three to five years and also now includes Turkey. We look forward to working closely with them to build revenues across all three of our divisions within this highly prospective region.”
Dr Ahmed Al-Alawi, CEO of White Apex and newly appointed WideCells Group Managing Director of MENA and Asia-Pacific said, “White Apex is pleased to be associated with Widecells Group. Our joint efforts will make stem cell treatment accessible and bring trust and authenticity to this growing area of medicine. We believe the delivery of this end-to-end stem cells solution will transform healthcare in the MENA and Asia-Pacific regions and I am delighted to support the Company in the creation of a regional office to support roll-out."
White Apex will sell and promote the following WideCells Group services:
• WideCells, stem cell collection and dispatch – covers the processing, quality control, analysis (infectious disease screening) and long-term storage (up to 25 years) of cord blood and/or cord tissue
o White Apex is an appointed exclusive agent and authorised to sell cord blood and tissue storage services directly to customers (expectant parents) or to appoint sub-agents within the Territories, generating recurring revenues for WideCells Group
o White Apex to procure clients in the Territories and send samples to WideCells Group’s Institute of Stem Cell Technology laboratory in Manchester
o An initial start-up fee of £15,000 payable to WideCells Group immediately followed by on-going monthly support fees for the UAE market
o The same model with payment of an initial start-up fee followed by on-going monthly support fees will apply to each new country within the designated Territories
• INDUS, a novel synthetic bone graft which promotes new bone formation. Two products will be available for purchase – INDUS TCP and INDUS BCP
o White Apex is an appointed exclusive distributor and authorised to sell INDUS directly to customers (such as clinics or dentists) or to appoint sub-dealers within the Territories
o Minimum sales targets will be agreed and established in the first 90 days when entering each country within the Territories
• CellPlan, the world's first stem cell healthcare insurance plan with financial cover for medical treatment, travel and accommodation expenses and concierge service to manage the treatment process
o White Apex to exclusively facilitate introductions between CellPlan Limited (a subsidiary of the Group) and insurance companies in the Territories with a view to securing commercial sales agreements
o Potential for White Apex to introduce CellPlan Limited to stem cell storage facilities and provide ongoing support
o CellPlan Limited will pay White Apex introductory commission fees on successful introductions which lead to new policies being sold within the Territories
o The agreement becomes effective upon, amongst other things, the approval of the WideCells Group’s commercial partners which established the CellPlan policy.
• Wideacademy, providing stem cell education and training services via a custom-built Statistical Analysis System (‘SaaS’) platform
o Paid for subscriptions for doctors and medical professionals to access premium content and digital tools – charged at £120 per year per subscriber/ doctor
White Apex to initially sponsor subscriptions for 2,000 doctors per year for two countries in the agreed Territories for a period of three years, generating annual revenues of £240,000, with the first payment due immediately
All future sponsorships / subscriptions secured in the Territories will be shared between Wideacademy and White Apex
The same model applies if White Apex sponsors doctors in other countries within the designated Territories
o Wideacademy platform localised to the MENA region
White Apex has the option to pay £750,000 for Wideacademy to localise its bespoke SaaS platform for use in the MENA region
If the option is exercised by White Apex, it is to be paid annually in three instalments of £250,000, with first payment due before 31 December 2017
o Wideacademy platform localised to the Asia-pacific region
White Apex has the option to pay £750,000 for Wideacademy to localise its bespoke SaaS platform for use in the Asia-Pacific region
If the option is exercised by White Apex, it is to be paid annually in three instalments of £250,000, with first payment due before 31 March 2018
Wideacademy will offer courseware modules to medical and enterprise professionals to enhance their CPD (continuous professional development) – it is anticipated that these modules will be free-to-air, but the optional accreditation which comes from completion will be charged at c. £200 per module
Wideacademy will share with White Apex 30% of revenues derived from accreditation of online courses from users in the Territories
About White Apex
White Apex is a multi-sector advisory business with offices in the UAE, Oman, Bahrain and Kuwait. The company supports clients across four primary divisions – Corporate Advisory, Investment, Energy and Healthcare – and is experienced in the marketing and sale of commercial products.
Additionally, White Apex will operate a regional office in Dubai for WideCells Group. This will be led by Dr. Ahmed Al-Alawi, who has been appointed WideCells Group Managing Director of MENA and Asia-Pacific. Dr. Al-Alawi is an experienced stem cell scientist who previously led a team at Genzyme, which was the world’s third-largest biotechnology company in 2010, prior to its acquisition by Sanofi in 2011. He also founded The Middle East Thrombosis Institute (www.tri-london.ac.uk). Alongside his medical achievements, Dr. Al-Alawi has considerable cross functional experience in international Fortune 500 & FTSE companies, having previously held roles at Philips Electronics and Shell International. He also has notable regional connections, having previously worked within the Omani Government and most recently co-founded RAY International UAE in 2015, which is part of the leading RAY International Group (http://rayinternational.ae).
Other team members include Ahmad Jemain, who has been appointed WideCells Group Chief Operating Officer of MENA and Asia-Pacific. Mr Jemain has considerable experience in corporate and enterprise in the South East Asian region, particularly within the insurance industry. Zakaria Aziz also joins the team as WideCells Group Business Development/ Marketing in South East Asia. Mr Aziz is a successful entrepreneur who co-founded RAY International Group. He has over 28 years of business experience in the oil and gas sectors in both South-East Asia and the Middle East.
For further information, please visit the Company’s website www.widecellsgroup.com, follow us on Twitter @WideCells_Group or contact:
WideCells Group CEO – João Andrade Tel: +351 919 033 171
Smaller Company Capital Ltd Broker – Jeremy Woodgate & Rupert Williams Tel: +44 (0) 20 3651 2912
Shard Capital Partners LLP Broker – Damon Heath & Erik Woolgar Tel: +44 (0) 20 7186 9950
St Brides Partners Ltd PR – Charlotte Page & Olivia Vita Tel: +44 (0) 20 7236 1177
Notes to Editors
WideCells Group PLC
WideCells Group PLC is building an integrated stem cell services company, focused on making stem cell treatments accessible and affordable. 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.
The Group has three divisions:
• CellPlan: the world’s first stem cell healthcare insurance plan with financial cover for medical treatment, travel and accommodation expenses and concierge service to manage the treatment process
• WideCells: The Institute of Stem Cell Technology has been established and is based in the University of Manchester Innovation Centre to focus on stem cell research and regenerative medicine. WideCells also has international cryogenics divisions specialising in stem cell storage.
• Wideacademy: developing an education and training division to promote awareness of the benefits of stem cell storage across the global general practice community.
The Group has built an experienced senior management team that has been integral to the development of its growth and business to date.
Stem Cell Fast Facts:
• Cord blood (which is taken from the umbilical cord) provides the most effective source of stem cells for families due to it being simple, safe and painless to collect relative to other sources of stem cells such as bone marrow – WideCells will focus on promoting the collection and storage of this.
• Since 2005, there has been a 300% increase in the number of illnesses that can be treated using stem cells
• 82 illnesses can currently be treated using stem cell procedures
• Despite initial storage often costing no more than a few £thousand, actual treatment can cost in the £hundreds of thousands
White Apex General Trading
White Apex is a boutique advisory business covering wide spectrum of services. Rooted in engineering projects, over the years, the company has become a multi-sector, global advisory business focused on building highly valued relationships with individuals, corporates, institutions and Governments. Today, the company supports clients across four divisions:
• Corporate Advisory
White Apex is a privately owned, dynamic company combining the diverse, complementary talents of a multi skilled team with global experience. The company prides itself on its integrity, agility and client-led, partnering approach. It invests time in developing a deep understanding of its clients’ needs – partnering with them to provide solutions that enable their business, protect their assets and grow their capital. Whether their priority is empowering their business or increasing their presence, White Apex have the sector understanding and proactive risk management expertise to help them make the right decision at the right time and with the right people. They believe that by combining these qualities and experience they offer a distinct and compelling offering that sets the company apart from other firms. More importantly, these attributes help its clients solve the most exacting challenges and seize opportunities.
This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 (MAR).