Heart pump manufacturer Ventracor has been placed in voluntary administration after being unable to find an investor willing to help fund its operations past 30 June.
The company says it canvassed 130 potential investors in Australia, US and Europe over the past 12 months, and also spoke to 50 companies about a potential takeover for the group.
An attempted capital raising in December from retail investors was also abandoned as investors were simply unwilling to go near the risky biotech sector in the current climate.
The company says it is in negotiations with two parties regarding the sale of one asset, but as these negotiations did not include short-term funding the directors felt it was prudent to put the company into voluntary administration and let the administrators handle any sale negotiations.
Ventracor has appointed Steven Sherman and John Gothard of Ferrier Hodgson as administrators.
Chairman John Ward said he was disappointed by the collapse of the company.
"The board shares with shareholders a deep sense of sadness and regret that Ventracor has been placed into voluntary administration. In the midst of an unprecedented and ever worsening global financial crisis, the company has not been able to raise sufficient funds to maintain its operations through to 30 June 2009."
Ventracor was also recently rocked by revelations that one of its devices had been linked to the death of three patients and was subject to an investigation by the Therapeutic Goods Administration.
The company's fall has been spectacular. Back in 2003, the company was valued at more than $900 million, but its market capitalisation has since crashed to $25 million.
The administrators will now begin an investigation of the company's financial position.
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