22nd Dec 2020 11:01
(Alliance News) - Microsaic Systems PLC shares plunged on Tuesday as it announced the appointment of KRE Corporate Recovery Ltd to explore options maximising creditor and shareholder value due to the conclusion of a formal sale process without securing an offer.
If KRE fails to find a solution that generates enough value, the company will be forced to appoint a liquidator to wind-up its affairs.
Shares in the developer of mass spectrometry instruments fell 67% at 0.13 pence on Tuesday in London.
At the end of July, following a market sounding exercise, Microsaic found the market conditions were not supportive of raising enough equity to fund the business eventually to profitability. Therefore, the company appointed BDP LLP as financial adviser for a strategic review, including a formal sale process.
However, despite discussions with several interested parties, the formal sales process has concluded with no definitive offer or any other proposal which would provide enough funds for Microsaic to carry out its business plans.
KRE will run a process to offer the business and assets of the company, a process that is expected to run until the end of January 2021.
However, should the process not be successful, Microsaic will look to appoint a liquidator to wind up its affairs. Should a liquidator be appointed, the company would incur additional costs while liabilities could accelerate which would diminish the potential realisations for shareholders.
By Dayo Laniyan; [email protected]
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