(Alliance News) - Collagen Solutions PLC on Thursday said it will conduct a formal review of strategic options which could result in the sale of the company or its assets.
The stock was trading 82% higher at 2.18 pence each on Thursday afternoon in London.
The biomaterials and regenerative medicines firm said it has commenced a formal sales process, adding that it has appointed England & Co LLC and Goodbody Stockbrokers UC as joint financial advisers.
Collagen solutions stated it is in discussions with "a number of parties" regarding a potential sale of the company.
"Shareholders are advised this is not a firm intention to make an offer and there can be no certainty that any offers will be made as a result of the formal sale process, that any sale or other transaction will be concluded," the company said.
In March, Collagen said it expects a widened loss for its financial year to the end of March due to increased costs from a development and manufacturing contract which took longer than originally anticipated. The company said it expects to record a one-time write down of GBP900,000 relating to the delayed contract. It also expects delays in certain contracts to impact annual revenue.
In financial 2019, the company recorded a pretax loss of GBP1.8 million and revenue of GBP4.5 million.
By Ife Taiwo; ifetaiwo@alliancenews.com
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