De-listing? Impact on PI's?21 May 2012 16:29
Human tissue specialist Asterand (LON:ATD) said it expects to ask for shareholder approval for the sale of its non-BioSeek Tissue Based Solutions business in the next few weeks.
Shareholders applauded the news with the shares up 37 per cent today.
It is also considering options for its other subsidary, BioSeek which provides cell-based human disease models for drug discovery.
Asterand said: “The board also continues to explore a number of alternatives in respect of the BioSeek business including the continuation of the business on a stand-alone basis or the sale of the business after the potential disposal of the Tissue business.”
It also said it is managing its cash flow carefully so that it will have the necessary funds to complete a transaction for the Tissue business.
In April, the company said it had been unable to find a single buyer for the business as a whole.
Asterand said that despite ‘volatile’ trading conditions and the distractions of the sales processes, revenue remained flat overall in the period to 31 March.
Revenue for the Tissue business improved, while BioSeek revenue reduced.
The sale of the Tissue business enable Asterand to repay its creditors but additional funding would need to be sought to keep the BioSeek business going or if it needs funds for its sale.
The group is also considering delisting after the disposal of the Tissue business in order to cut costs.