York-based Paraytec aims to save lives by developing applications to treat sepsis and bladder cancer

Braveheart Investment Group has provided an update on its investment portfolio and strategy for investors.

The enterprises within Braveheart’s investment portfolio include York-based Paraytec, which develops high-performance detectors for the analytical and life sciences instrumentation markets. In November last year, it was revealed that University of Sheffield scientists and Paraytec have developed an accurate, efficient and low cost Covid-19 test.

The statement from Bravheart said: "The UK Government's decision to rapidly wind down the testing and isolation requirements for UK citizens and travellers to the UK has abruptly changed the nature of the COVID-19 test market which has led to a slowing of discussions with the remaining potential acquirers of Paraytec Limited and its COVID-19 test.

"It now appears unlikely that Braveheart will be able to conclude a sale with one of the remaining engaged parties at an acceptable price in the foreseeable future."

Braveheart's board believes that after the completion of the prospective clinical study, scheduled to be concluded by the end of June 2022 to provide clinical proof of concept of the CX300 technology platform, it would be in the best interests of shareholders that Paraytec focus on the development of the sepsis and bladder cancer applications for its technology.

Paraytec believes the development of the COVID test to date will be invaluable for the development of sepsis, bladder cancer and other applications of the CX300 technology platform.

Since the remaining potential partners and potential acquirers that Braveheart is in discussions with are interested in both the COVID and sepsis applications, it may be that a buyer or partner will still emerge in due course, the statement said.

The statement added: "Braveheart's remaining strategic investments are well positioned for growth and we will continue to adopt a dual strategy of building their value and at the same time engaging in discussions with potential acquirers, thereby seeking to maximise value to Braveheart

"Braveheart's current share price has fallen in recent weeks, largely in response to a change in market sentiment towards 'COVID companies', which has impacted other quoted companies in this space. However, the board believes that while the current share price is now close to the net asset value stated in the unaudited Interim Accounts, Paraytec, though an important component of shareholder value within the group will not on its own, determine the prospects for increasing shareholder returns.

"Your board remains committed to generating shareholder value in the short and medium term, through its strategy of investing in and developing undervalued technology businesses and will update shareholders as events unfold."