Angel Biotechnology Bust
Angel Biotechnology has suspended its shares on the stock exchange.
The firm based at Pentlands Science Park in Roslin has announced it is to enter administration after failing to reach an agreement with an overseas firm to form a strategic partnership that would salvage their operations.
Administrators KPMG have said that they are trying to find a buyer for the troubled firm but also confirmed that all 22 members of staff will remain employed at this time.
The company specialises in the manufacture of stem cells, cell therapies, recombinant proteins, antibodies and viruses for clinical trial use and commercial sale and has facilities in Glasgow and Northumberland as well as Penicuik.
Angel Biotechnology, and its subsidiary Angel Biomedical, had suffered cash flow problems due to poor market conditions and announced earlier this year that unless a partnership could be reached with a Russian firm, MMH, they would be forced to call in the administrators. A partnership was not agreed in time and the firm has now been placed in administration.
Last year Angel Biotechnology announced that they were expanding and bought a collagen manufacturing facility in Glasgow.
Angel’s shares closed at 5p, a twelve month low for the firm.
A statement from them can be read below:
8 February 2013
Angel Biotechnology Holdings plc
(“Angel” or “the Company”)
Statement regarding suspension
On 28 January 2013, the Company advised announced that Company needed to enter into a strategic relationship with another party to develop more effectively its contract manufacturing business and that it had for some time been in discussions with a consortium of overseas organisations in this connection. The Company also stated that in the opinion of the Board, this arrangement was essential to the ongoing viability of the Company.
The Company regrets to announce that discussions with that consortium have been terminated and requested an immediate suspension of trading in its Ordinary Shares on AIM pending clarification of its financial position.
In view of its trading difficulties, the Company intends to appoint administrators and a further announcement will be made as appropriate.