16th Jun 2014 08:07
LONDON (Alliance News) - Shares in AorTech International PLC were trading down by a third Monday after it said it expects to post exceptional charges for the year to end-March as a result of launching litigation against its former chief executive, Frank Maguire.
The company expects to post a loss before interest, tax, exceptional costs and amortisation of around USD1.0 million, with revenue of around USD600,000.
Maguire stepped down last December following the company's transition from a medical polymer manufacturing business to a pure-play intellectual property exploitation company.
AorTech said it has taken legal proceedings against Maguire relating to "certain alleged activities" Maguire undertook whilst he was an employee. It said the aim of the proceedings would be to ensure Maguire complies with his obligations under the terms of his service contract with the company.
The company said it has undertaken a lot of work with the most recent licensee of its IP, Biomerics LLC, and as a result the cost of capital equipment, labour and time for the validation process of its polymer products would be higher than it originally expected. It expects to complete the validation process by the end of July.
AorTech is continuing to market its material to other medical-device companies. However, it cautioned that many of its licensees had seen delays and were yet to achieve commercialisation of their products.
The company continues to carefully monitor its expenditure and has continued to make savings since its interim results, AorTech said.
Shares in AorTech were trading down 33% at 32.00 pence Monday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
Copyright 2014 Alliance News Limited. All Rights Reserved.
Related Shares:
AOR.L