AorTech International PLC Trading and Commercial Update (6408J)
June 16 2014 - 2:00AM
UK Regulatory
TIDMAOR
RNS Number : 6408J
AorTech International PLC
16 June 2014
AorTech International Plc ("AorTech" or the "Company")
Trading and commercial update
AorTech is pleased to provide an update to shareholders on the
current position and recent developments at the Company.
Since the resignation of the former Chief Executive of the
Company, a considerable amount of time and effort has been
undertaken by the Board to ensure that customers and licensee
relationships are fully and properly established in order for
AorTech, together with its licensees, to maximise the potential
value of the technology.
A great deal of work has had to be undertaken with our most
recent licensee, Biomerics, which has a manufacturing and supply
agreement and which will, therefore, be responsible for the
manufacture and supply of AorTech's polymers to all of our
customers and potential customers. The costs of the capital
equipment required and the labour and time costs for the polymer
validation process are now expected to exceed the original
estimate. It is anticipated that the validation process will be
completed by the end of July 2014.
In parallel with this validation process Biomerics is now
marketing AorTech's material to other medical device companies.
Several of AorTech's licensees are experiencing delays through the
development and regulatory requirement phases and have yet to
achieve commercialisation of their products.
The Board continues to carefully monitor all cash expenditure
and has made further savings since the interim stage. The Company
has been much simplified with the closure of the US operating base
and all operations have now been transferred to the UK. The benefit
of the majority of these savings will be seen during the current
year.
The Board also wishes to inform shareholders that the Company
has instigated legal proceedings against its former Chief
Executive. These proceedings relate to certain alleged activities
of Mr Maguire whilst an employee of the Company and are aimed at
ensuring that Mr Maguire complies with his obligations under the
terms of his service contract with the Company.
As a consequence of this litigation and the work done in respect
of the Biomerics license, the Company has incurred some exceptional
charges for the year ended 31 March 2014.
The Company expects to announce its preliminary results during
the course of July and results for the year ended 31 March 2014 are
anticipated to show revenue of approximately $0.6m and a loss
before interest and tax before exceptionals, loan note premium
adjustment and amortisation of approximately $1.0m
The cash position at 31(st) March 2014, was over $600,000 after
having incurred the additional costs as detailed above.
Enquiries:
AorTech International plc
Bill Brown, Chairman
Tel: +44 (0) 7730 718296
finnCap
Stuart Andrews/James Thompson
finnCap as Nominated Adviser
Tel: 020 7220 0500
This information is provided by RNS
The company news service from the London Stock Exchange
END
TSTBLGDLCGBBGSX
Rua Life Sciences (LSE:RUA)
Historical Stock Chart
From Mar 2024 to Apr 2024
Rua Life Sciences (LSE:RUA)
Historical Stock Chart
From Apr 2023 to Apr 2024