Directors of struggling biotechnology company Fermiscan will pursue a sale of the business as they fight to find a way to keep the company alive.
The board of the company, which is developing breast cancer screening products, told the ASX late on Friday that attempts to raise fresh equity from institutional investors and private investors have not been successful and these discussions have been terminated.
While the board continues to take steps to conserve the company's cash, Fermiscan's future appears to depend on the director's ability to find a buyer for the business.
"In these circumstances the directors have formed the view that other strategic alternatives for extracting shareholder value should be explored, including the sale of the Fermiscan business at the same time taking all prudent steps to conserve existing cash," the directors said in a statement.
Fermiscan is developing a non-invasive breast cancer screening test that uses hair. But the company has struggled to commercialise the technology, and posted a loss of $5.1 million last financial year. Its managing director and a number of other key executives left the company during the period, and a merger with fellow biotech Polartechnics also collapsed.
Director Mark Fordee has taken the role as acting chief executive. He told SmartCompany this morning that the company could afford to take its time looking for the right buyer.
"We don't have a gun to our heads at all. There is significant interest out there."
That said, the directors' statement to investors underlines the dire state the company is in.
"No assurances can be given that such sale or other option will be successfully pursued and brought to completion."
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