Asterand plc (LSE: ATD), a leading global supplier of human
tissue and human tissue-based research services to
pharmaceutical and biotechnology companies engaged in drug
discovery research, today issues its Interim Management
Statement.
Since 1 January 2012, the Board has been focused on resolving
the funding crisis that arose in the fourth quarter of last
year. As previously announced on 30 April 2012, it has not
been possible to find a single buyer for the whole Group and,
instead, the Board has focused on securing buyers for the
constituent parts of the Group. Negotiations regarding the
sale of the non BioSeek Tissue based Solutions ("Tissue")
business are continuing and the Board expects that a
circular, seeking shareholder approval for the sale, will be
sent to shareholders in the next few weeks. The Board also
continues to explore a number of alternatives in respect of
the BioSeek business including the continuation of the
business on a stand alone basis or the sale of the business
after the potential disposal of the Tissue business. In an
effort to reduce costs, the Board is also considering whether
or not it is appropriate for the Group to continue as a
listed company following a disposal of the Tissue
business.
Despite these distractions and volatile trading conditions,
revenue for the period ended 31 March 2012 is flat over the
previous year, although the mix has changed with Tissue
revenues improving and BioSeek revenues declining. Cash
remains tight and the Group continues to manage its cash flow
carefully in order that it may have sufficient funds to
complete a transaction for the Tissue business. The Group
maintains a constructive dialogue with its major creditors
regarding the settlement of its secured loans, in which
regard Asterand remains in default, and believes that it
continues to receive the support of its lenders during this
process.
Shareholders should note that the proceeds from a successful
disposal of the Tissue business should enable the Group to
repay its secured creditors but that its cash resources will
not be sufficient to cover transaction costs and retained
liabilities. Further funding will be required after the
disposal of the Tissue business to sustain the BioSeek
business on an ongoing basis or until a sales agreement for
the business can be reached.
Shareholders should be aware that the completion of any
disposal or the securing of additional fu nding for the
Group is not guaranteed.
Further announcements will be made in due course.
Jack Davis, Chairman,
Interim Chief Executive Officer and
Company Secretary
Tel: Tel:
+ 44 (0) 1763 211 600 /
+ 1 (313) 263-0960
Alan Fishman, Interim Chief Financial Officer As above
Antony Legge
Tel: +44 (0) 20 7776 6550
Asterand plc is a leading supplier of high quality human
tissue and tissue-based services. Our comprehensive approach
to human tissue and research services offers pharmaceutical,
biotech and diagnostic companies the unique opportunity to
have one company meet all of their human biomaterial needs
along the continuum of drug discovery and development. Our
mission is to accelerate target discovery and drug compound
validation and enable our clients to take safer and more
effective drugs into the market.
For more information about Asterand please visit
http://www.asterand.com
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