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MS puts business under the microscope
Posted on Wednesday, 29 July 2020 14:12
Microsaic Systems (MS), a UK high technology company developing chip-based, bench-top and point-of-analysis mass spectrometry instruments, has decided to conduct a strategic review.
The Surrey-headquartered analytical equipment manufacturer said it has been considering financing options available to ensure it is sufficiently capitalised to take advantage of any growth opportunities.
One possibility is a capital increase, though the prevailing conditions mean it is unlikely to fetch enough from public market investors to fund the business through to profitability.
By undertaking a strategic review, MS would be able to weigh a broad range of options, such as realising value from a sale of the company, or its assets.
Other alternatives under the microscope would include a strategic investment by a business partner or other market participant, and a combination with another entity with concomitant funding for the resulting group.
Another option could involve licensing some, or all, of its technology in individual territories, regions or globally.
MS said that since 2001 it has invested over GBP 30.00 million in developing its novel and differentiated position in miniaturised mass spectrometry.
The company has three core products and over 60 patents in this chip-based, compact category, and sold over 160 such instruments to date.
MS noted it believes there is a potentially major new market for miniaturised mass spectrometry that can carry out online or at-line analysis in bioprocessing.
Furthermore, the group has pinpointed medium- to long-term opportunities for its technology in other high growth categories, such as point-of-care diagnostics.
MS was the top faller by percentage on the FTSE Aim All-Share index at the time of writing today as shares lost 36.4 per cent of their market value by 14:35 (28th July close: 0.55 pence) on news of the strategic review.
Yesterday, it closed at 0.55 pence and a market capitalisation of GBP 52.51 million.
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