Ark Therapeutics primes market for likely financing update

Viral product-focused manufacturing services company Ark Therapeutics expects to update the market soon regarding possible financing, an announcement issued by the company on Monday disclosed.

Viral product-focused manufacturing services company Ark Therapeutics expects to update the market soon regarding possible financing, an announcement issued by the company on Monday disclosed.

The group announced that it was actively pursuing a number of options regarding the possible financing of the company and its business, including through an issue of equity on a non pre-emptive basis.

The company stated that there was "no guarantee" that the discussions would be successful yet also stated that it believed it would be in a position to "update the market shortly".

This follows a previous attempt by the group to gauge interest among shareholders over a potential equity fund-raising which it said had showed a level insufficient to justify continuing with the proposal.

Over the past year, the company said it had reduced its cost base, terminated all costly investment in early stage product development and re-structured its business to focus solely upon generating revenue from its viral development and manufacturing services based in Finland.

The group advised its shareholders 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."

It added that the group's directors remained confident Ark has the potential to become a profitable, viral focused, contract development and manufacturing organisation.

In the meantime, and 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.

Ark Therapeutics has seven active clients and a number of further contracts in late stage negotiations.

Unaudited revenue for 2012 was up 300% to approximately £1.8m compared to 2011.

MF

Recommended

Which assets will benefit as the “jam tomorrow” bubble pops?
Investment strategy

Which assets will benefit as the “jam tomorrow” bubble pops?

With tech stocks, cryptocurrencies and many other “long duration” investments crashing hard, the “jam tomorrow” bubble looks to be bursting. John Step…
24 Jan 2022
Three innovative Asian stocks to buy now
Share tips

Three innovative Asian stocks to buy now

Professional investor Fay Ren of the Cerno Pacific Fund highlights three of her favourite Asian stocks to buy now
24 Jan 2022
Share tips of the week – 21 January
Share tips

Share tips of the week – 21 January

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
21 Jan 2022
Seven cheap defence stocks to buy now
Share tips

Seven cheap defence stocks to buy now

We’ve got used to a world without war between major powers, but that era is coming to an end as Russia threatens Ukraine and China eyes Taiwan. Buy de…
21 Jan 2022

Most Popular

Ask for a pay rise – everyone else is
Inflation

Ask for a pay rise – everyone else is

As inflation bites and the labour market remains tight, many of the nation's employees are asking for a pay rise. Merryn Somerset Webb explains why yo…
17 Jan 2022
Shareholder capitalism: why we must return power to listed companies’ ultimate owners
Investment strategy

Shareholder capitalism: why we must return power to listed companies’ ultimate owners

Under our system of shareholder capitalism it's not fund managers, it‘s the individual investors – the company's ultimate owners – who should be telli…
24 Jan 2022
Interest rates might rise faster than expected – what does that mean for your money?
Global Economy

Interest rates might rise faster than expected – what does that mean for your money?

The idea that the US Federal Reserve could raise interest rates much earlier than anticipated has upset the markets. John Stepek explains why, and wha…
6 Jan 2022