Shareholders, including Centrica, have failed to come up with more cash to keep fuel cell-based micro-CHP boiler technology developer Ceres Power Holdings going and it is looking to sell or wind-down its operations.
Ceres originally said that it would complete a fundraising by the end of September but it could not even raise some of the cash it required.
The latest news knocked nearly three-quarters off of the share price, which was already in the doldrums. At 2.5p a share, Ceres is valued at £2.15m.
The next field trials were due to be in 2014 and the product launch was expected in 2016. However, the date for the product launch has consistently moved further away in the past few years. Ceres has raised around £65m since it joined Aim eight years ago. More than £30m of losses had been forecast for the two years to June 2014 and most of that would have been a cash outflow.
It is possible someone will want to buy the technology. Centrica has invested cash in the company and backed the technology but it is unlikely to want to complete the development itself. Broker Peel Hunt is more sceptical and assumes that the business is more likely to be wound-down.
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