(Alliance News) - Motif Bio PLC on Wednesday said it is currently seeking a reverse takeover candidate as its share suspension deadline looms and only has enough cash to make it through to May.
Shares in Motic Bio were down 18% at 0.045 pence in London in afternoon trading.
Motif was reclassified as an AIM rule 15 cash shell after ceasing all operations and engaging Tamarack Associates to facilitate the sale of its antibiotic iclaprim, as well at other assets of its Motif Inc unit.
"It remains the case that in spite of a comprehensive outreach programme, no transaction is currently pending for the sale of Motif Inc's assets and there can be no assurance that there will be a transaction to monetise the assets," Motif Bio said.
Having been reclassified as a cash shell, Motif Bio must conduct a reverse takeover by July 28 or else have its share suspended from trading. It then has six months to complete an acquisition before having its shares cancelled.
At present, Motif Bio has enough working capital to make it through to May 2020 and is imposing "disciplined cost controls" with "very limited operations".
"The company's directors remain focused on sourcing an appropriate reverse takeover candidate for Motif Bio and this search continues. At present, no assurances can be provided that the effort will be successful to source and/or complete a reverse takeover transaction. The company's directors will provide shareholders with further updates as appropriate," said Motif Bio.
By Anna Farley; annafarley@alliancenews.com
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