Angel Biotech delivers another blow as it calls in administrators

Angel Biotechnology, which makes stem cells for medical research, delivered another blow to investors on Friday, calling for trading of shares to be suspended and sending the share price down over nine per cent.

The company, which in January announced that it was in discussions with a consortium of overseas organisations with the aim of establishing a strategic relationship between both parties in order to more effectively develop its contract manufacturing business, said Friday that these discussions have ended.

As a result the company has requested the immediate suspension of trading of its shares on AIM, pending clarification of its financial position.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up

"In view of its trading difficulties, the company intends to appoint administrators and a further announcement will be made as appropriate," was the comment made by the firm.

At the end of January the group said that the future of the group was dependent on it delivering both the proposed joint venture with MMH, but also on it entering a strategic relationship with another party.

It also acknowledged that it would be "extremely difficult" to raise funds through the market at the present time.

Angel, which makes stem cells for medical research, posted wider half year losses at £2.86m for the six month period ended September 30th 2012, most of which is attributable to a write back of accrued revenue and contract liabilities related to joint ventures. The company posted a loss of £241,000 the year before. Revenue for the period slipped to £1.07m from £1.4m previously.