17th Jul 2014 13:29
LONDON (Alliance News) - Cientifica PLC Thursday said it is in advanced negotiations over an investment, which would be the first step in implementing its investment strategy, with the deadline looming.
In a statement, the AIM-quoted investment company, which focuses on investment in businesses making use of advanced materials, graphene and emerging technologies, said that it has enough cash to meet its existing liabilities, but said it doesn't have enough surplus cash to implement its investing strategy. It said it is in advanced discussions over a short-term loan facility to secure the deal.
The company added that it is reviewing formal offers on equity financing that would enable it to pursue its strategy.
Chief Executive Tim Harper said that the company is confident of meeting the October 25 deadline. Under AIM rules, when a company becomes an investing company, and doesn't make an acquisition constituting a reverse takeover or fails to implement its investing policy within twelve months, the exchange will suspend that company.
"We have been in discussion with a number of parties regarding investment and have strategies in place to achieve this," Harper said in a statement.
"The application of graphene in commercial products remains a significant opportunity for the UK and we believe that we have the contacts in place to exploit it," Harper added.
Cientifica shares were Thursday quoted up 0.08 pence, or 3.9%, at 2.00 pence.
By Samuel Agini; [email protected]; @samuelagini
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