London-listed Genedrive PLC said it was selling two of its business divisions to a company materially owned by Catherine Booth, a member of its board.
Privately held biotechnology company Epistem 2 Ltd. will buy Genedrive's contract research and pharmacogenomics divisions for up to £1.9 million. Of this amount, £1.2 million will be paid on completion while the remaining £750,000 will be contingent upon Epistem securing certain research and development tax credits.
The sale is subject to the approval of Manchester, U.K.-based Genedrive's shareholders, which will be sought June 4, and is the result of a strategic review of the company's noncore operations, which began in March 2016.
Booth, who is also the co-founder of both Genedrive and Epistem, will resign from the boards of both organizations once the transaction closes.
Genedrive CEO David Budd said the disposal will help the company narrow its focus on its molecular diagnostic offerings that are used to identify diseases, including hepatitis C.