LONDON (Alliance News) - Shares in Evocutis PLC were trading up 27% Tuesday after it said that it expects discussions over the sale of its technology and assets to be concluded within three months, as it continued its efforts to negotiate a sale for its intellectual property.
The company said that it had held discussions with around 100 companies in the UK, Europe and US over the possible acquisition of the company, between December 2012 and September 2013, but despite advanced discussions with a number of these companies, it did not find a company prepared to make a formal offer for the whole of Evocutis.
The company issued redundancy notices to all of its employees other than its board on December 3, 2013. Evocutis has shifted its focus into managing an intellectual property portfolio to generate revenue from royalties, and is negotiating an exit from its property lease to further reduce costs.
As a result of these reduced costs, Evocutis posted a pretax loss of GBP1.0 million for the year ended July 31, 2013, narrowed from a pretax loss of GBP1.5 million the year before.
Evocutis posted revenue of GBP395,000, down from GBP457,000.
Evocutis said it is in discussions with a small private company over the potential sale or licence of its intellectual property assets.
Evocutis cautioned that it if cannot generate sufficient income from the licensing of its intellectual property or cannot agree an exit from its property lease, it may not be able to continue. However, Evocutis said it is confident it will have resources to continue in operation for at least twelve more months.
Shares in Evocutis were trading up 27% Tuesday morning at 0.350 pence.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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