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Sareum

  • BY: Andrew Hore |
  • POSTED: 09/07/2008 |

Sareum is running out of cash and its shares have been suspended.

The drug discovery company is looking for a transaction that would transform the company but this is unlikely to happen for several months. A fundraising would be required at the same time as the transaction and there is no certainty that this would be achievable. The shares have been suspended until one or both these these things happen.

The shares fell 0.023p to 0.15p prior to their suspension. That values Sareum at £1.25m.

Sareum had cash in the bank of £920,000 at the end of December 2007. There had been a cash outflow of £807,000 – after an R&D tax credit – in the previous six months. It raised £548,000 before expenses via a placing at 0.25p a share. Cost cutting measures were undertaken in May but Sareum is unlikely to have much cash left.

Drug discovery is a long-term business but Sareum won’t be around to reap any benefits if it does discover a commercial drug if it doesn’t get itself on a sound financial footing.

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