Company Update21 Jan 2013 09:12
COMPANY UPDATE
London, UK, 21 January 2013 Ark Therapeutics Group plc has over the last year reduced its cost base, terminated all costly investment in early stage product development and re-structured its business to focus solely upon the generation of revenue from its viral development and manufacturing services based in Kuopio, Finland. The Company has seven active clients, and a number of further contracts in late stage negotiations as well as a growing order book based on a significant number of further client discussions. Unaudited revenue for 2012 was up 300% to c£1.8 million compared to 2011.
In order to fund the Company's new business model through to profitability, it has over the last few weeks been in discussions with a number of shareholders in order to gauge support for a substantial equity fund-raising. The level of support obtained to date has been insufficient to justify continuing with the proposal, and as such those discussions have been discontinued. However, the Company has obtained expressions of support for the business model from some existing shareholders, and is actively pursuing a number of options as regards a possible financing of the Company and its business, including through an issue of equity on a non pre-emptive basis. While there can be no guarantee that those discussions will be successful, the Company believes it will be in a position to update the market shortly. Shareholders should note that in all likelihood, given the current share price and the expected level of investment being discussed, any equity financing proposal will be materially dilutive and subject to shareholder approval.
The Directors remain confident that Ark has the potential to become a profitable, viral focused, contract development and manufacturing organisation. In the meantime, as previously announced the Company continues to explore opportunities to monetise its non-core assets, and is in discussions with a number of interested parties.
Sign In
Follow the stocks
