LONDON (ShareCast) - Venture Life, a company focused on developing products for the ageing population, on Monday sold some of its trademarks for one of its skincare products.
The sale is expected to generate an average of at least €500,000 in additional revenues over the next five years, including through milestone payments and guaranteed manufacturing business.

Venture Life did not reveal the identity of the buyer, but said it was its Biokosmes largest customers in 2014. Biokosmes is Venture's Italian cosmetics and medical products subsidiary.

It also said it retained certain trademarks for the product, including for the China and India markets.

Chief executive Jerry Randall commented: "This is a very good deal for both Venture Life and for one of our long-standing and important customers."

"Through this agreement Venture Life will benefit from this growth through guaranteed additional manufacturing revenues for our facility in Italy, and together with the further strengthening of the relationship with the customer, this additional revenue is expected to make a material contribution to group profitability over the minimum five year term of the agreement."

He added that the sale was a "strategic decision" as the unnamed company is "better placed through its existing business and infrastructure to generate rapid revenue growth from the assets".

Analysts at Panmure Gordon said: "This deal is designed to sweat the assets better, and with the trademarks sold not materially contributing to the business the real synergy from today's announcement is found in the incremental €500k manufacturing revenue the company has secured from its partner."

Shares in Venture Life fell 0.88% to 88.22p on Monday at 10:00.

Email this article to a friend

or share it with one of these popular networks:

• DIGG
• FACEBOOK
• STUMBLEUPON
• MIXX
• YAHOO BUZZ
• DELICIOUS
• REDDIT
• NEWSVINE