(Alliance News) - Motif Bio PLC on Monday said it swung to a loss in the first half of 2020 as it searches for a reverse takeover candidate.
The AIM-listed cash shell posted a loss for the half year ended June 30 of USD987,000 versus USD4.8 million profit a year prior.
The first half loss was primarily attributed to revaluation of derivative liabilities, which amounted to a loss of USD305,000 versus a gain of USD5.6 million.
The company said it is maintaining its focus on sourcing and completing an appropriate reverse takeover candidate in an effort to deliver value to shareholders.
This follows the company's re-organisation following shareholder approval at the end of 2019.
This has allowed Motif Bio to be unhindered by its previous obligations to its former operating subsidiary, Motif Biosciences Inc. This has given the the company the flexibility to pursue a reverse takeover candidate for the company.
Going forward, Motif Bio said it may require additional capital though the issuing of securities would mean "existing stockholders may experience significant dilution."
The company had USD800,000 cash at June 30.
By Greg Roxburgh; gregroxburgh@alliancenews.com
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