28th Jun 2019 12:47
(Alliance News) - SalvaRX Group PLC said on Friday its annual loss widened following the disposal of its SalvaRx Ltd stake, with the cash shell continuing to evaluate its options.
The company reported a pretax loss of GBP549,000 in 2018, wider than GBP458,000 reported the year before. This was as operating costs rose to GBP522,000 from GBP445,000. The company did not generate a revenue in either year.
SalvaRX posted a net loss for 2018 of GBP3.4 million, versus GBP2.2 million the year before. Of this, GBP2.8 million came from discontinued operations following the disposal of a 94.2% stake in SalvaRx Ltd to Portage Biotech Inc.
"I believe that the disposal and the demerger was the best way to unlock and maximise value for shareholders without causing the dilution inherent in raising additional funds at a price which I did not believe reflected the value of the company's underlying oncology assets," said Chair Jim Mellon.
As the disposal and demerger resulted in the divestment of virtually all of the company's existing business, SalvaRX is now classified as a cash shell under AIM rules. In order to avoid having shares suspended, the company needs to make a reverse acquisition or seek re-admission as an investing company by July 9.
"As a result, your board is in the process of evaluating suitable opportunities for the company and I will make a further announcement as soon as is practicable," said Mellon.
Shares in the the drug development company were untraded at 9.25 pence on Friday.