The hunt is on for a potential rescue buyer for York life sciences firm Aptamer Group, amid an urgent need for funding.
Earlier this month the firm told investors on the London Stock Exchange that it needed short term funding to continue as a going concern, and was targeting a reduction in operating cash outflow to below £3m in a bid to stabilise. Now, bosses have appointed SPARK Advisory Partners and FRP Advisory to lead a strategic review including the hunt for a buyer.
The firm said it was also looking at potential debt and equity fundraising. It said any equity fundraise would be at a substantial discount to the current share price and would likely involve the return of former directors Arron Tolley and Steve Hull. Mr Tolley, Aptamer's former CEO left the company in May following a warning that revenues in 2023 would be materially lower than expected.
Read more: WANdisco shares plummet as trading resumes following potential fraud
Aptamer said there had yet to be any offers for the business but that the formal sale process would allow the board and its advisers to engage interested parties.
In an update to investors, Aptamer said: "As discussed in the announcement of the company's interim financial results on March 14, 2023 and subsequent announcements, the company requires additional funding to enable it to meet its ongoing working capital requirements. The company's strategy is to build a base of profitable contract research revenue based on its Optimer technology and to seek higher value licensing opportunities where there are specific diagnostic or therapeutic applications.
"The company anticipates reaching a cash positive operating position within two years, and will therefore need working capital funding until then or until sufficient material licence fees are generated, if sooner."
