14th Jun 2018 11:56
LONDON (Alliance News) - Abzena PLC on Thursday said it has entered into a non-binding heads of terms agreement with an unconnected third party as it requires additional funding to support its operations.
Shares in Abzena were trading 34% lower following the news at 12.21 pence each on Thursday.
The life sciences company did not name the investor and said there can be no assurance that the transaction will be completed.
Abzena was in talks with institutional investors regarding a potential equity fundraising, but the board has decided to prioritise the potential partial monetisation of its interests in certain Abzena Inside products.
The company intends to sell an interest in its entitlements to future royalties which may arise from certain Abzena Inside products.
Abzena believes that upon completion of the agreement, it will receive sufficient funds to cover short-term working capital needs.
Meanwhile, the company continues to explore near-term funding options, including equity and debt financing.
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