Miniature antenna manufacturer Sarantel Group has not been able to raise the further £4.75m that it requires to move the business forward and it has not been able to secure a buyer for the core subsidiary.
Institutions had indicated that they were willing to back a placing at 0.1p a share. The shares had been trading at a premium to that price prior to the announcement that Sarantel could not raise sufficient funds to provide the working capital required. The existing cash resources will run out in the next few weeks.
This means that the company needs to dispose of the trading position or the holding company will need to go into administration. A potential purchaser has not been able to proceed with the acquisition and there is a low likelihood that the disposal will happen before the cash runs out.
In April, John Uttley resigned as a non-executive after nearly eight years in the role.
Foresight has already sold all of its stake in Sarantel.
The share price slumped 0.4p to 0.045p, which values the company at £500,000.
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