Fastnet Oil & Gas is exiting the oil business and seeking a healthcare acquisition.
Fastnet will not be spending any more, beyond existing commitments, on oil exploration in Morocco or the Celtic Sea, where it has failed to sign-up a partner.
There was $15.9m left in the bank at the end of July 2015, which had fallen from $18.8m at the end of September 2014. There are $600,000 of liabilities to take into account but the fixed assets, mainly capitalised exploration spending, are likely to be written off.
Annual overheads have been running at $1.9m and they should fall to less than $600,000 a year.
The share price rose 0.08p to 2.1p, which values Fastnet at £7.3m. That suggests a discount to cash of around one-quarter.
The main focus will be biopharma companies Europe that already have a strong management and products that have significant commercial potential. They should at least be near to generating revenues so a business with early stage products in development would not fit the bill.
There are plans to make new appointments to the board. Non-executive director Cathal Friel has more than doubled his stake to £11.5m, although he was buying shares at 4p each.
The company is changing its name to Fastnet Equity.
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