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Oxonica

  • BY: Andrew Hore |
  • POSTED: 09/07/2009 |

Oxonica has failed in its appeal to overturn the court decision that it owes Neuftec Ltd royalties on sales of its Envirox fuel additive.

The nanomaterials developer paid £394,000 into a joint bank account of both parties’ solicitors in October 2008 to cover the royalties owed.

Costs will be dealt with at a later hearing and they will be substantial because Oxonica will also have to pay Neuftec’s costs. There was a £550,000 provision for costs in the Oxonica balance sheet but this is being increased to £800,000.

That will be a large chunk of the £1.6m that Oxonica has in the bank. There was £2.9m in the bank on 16 June 2009. There was also debt of £1.2m at the end of 2008. It is unclear if any of the debt has been paid off. It is also possible that Oxonica has already paid some of its legal costs. 

Oxonica will be holding a general meeting to cancel its Aim quotation on 24 July. It says that this will help it to reduce costs. Share trading will move to ShareMark. There still won’t be much cash left by the end of 2009 at this rate.

The shares fell 1p to 3.5p each, valuing the company at £2.29m. The shares have more than halved in the past month. Much of the recent fall is due to the decision to drop the Aim quotation.

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