(Alliance News) - Shares in Abingdon Health PLC soared on Tuesday, as it said it reached a GBP8.9 million settlement agreement with the UK Department for Health & Social Care.
Shares in the York-based lateral flow test developer and manufacturer were up 53% to 14.50 pence each in London on Tuesday midday.
Back in March, Abingdon said it had not been paid invoices totalling GBP8.5 million by the UK Department for Health & Social Care for lateral flow devices delivered to the DHSC in January 2021 and for components purchased on behalf of the DHSC in 2020.
On Tuesday, Abingdon confirmed that it has reached a settlement agreement with the DHSC on the outstanding invoices payable by DHSC for lateral flow tests and component stock.
The company said the agreement is in full and the final settlement of the outstanding debt is GBP8.9 million, excluding interest. This includes a contractually required cash payment of GBP6.3 million from the DHSC to be paid by July 22.
Once received, the funds will provide additional working capital and be deployed to help fund various growth initiatives, Abingdon added.
By Sophie Rose; sophierose@alliancenews.com
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Abingdon Healt. (ABDX)