Trellus Health shares suspended as it seeks long-term funding

(Sharecast News) - Trellus Health said on Friday that its shares had been suspended from trading on AIM as it continued to seek long-term funding and evaluate options including the potential sale of its US subsidiary.

The healthcare company, which delivers the Trellus Elevate digital platform for managing complex chronic conditions, said it had previously reported that monthly cash burn had been cut to about $300,000 as of March.

At the time, it said a contract renewal and a loan from a co-founder were expected to extend its cash runway into May.

Trellus said on Friday that it had now extended its runway until mid-June through further cost-saving measures, including additional reductions in compensation, renegotiation of certain vendor contracts and other actions.

The board said it remained supportive of the company's commercial strategy and was continuing to assess potential funding options to extend the cash runway further.

However, it said it had not yet secured long-term funding.

Trellus added that, while the convertible loan note facility provided by Alumni Capital remained in place, its use continued to be constrained by current market conditions.

As a result, the board had engaged corporate restructuring advisers to protect stakeholders' interests and was now evaluating all options, including the sale of Trellus Health Inc., its US subsidiary.

The company said that, due to ongoing uncertainty over its financial position, limited working capital and the other circumstances outlined, it had requested the suspension of its shares from trading on AIM with effect from 0730 BST on Friday.

Further announcements would be made as appropriate.

Reporting by Josh White for Sharecast.com.

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