Another AIM company bites the dust. Trellus Health has filed a notice of intention to appoint administrators after concluding that it no longer has sufficient funds to continue trading as a going concern.
The AIM-listed healthcare company, which runs a digital platform for managing complex chronic conditions, said it had lined up Paul Zalkin and Tom Parish of Quantuma Advisory as proposed administrators and intends to formally appoint them within five business days, unless circumstances change. The move is intended to protect the interests of creditors.
The company is still attempting to sell certain assets, including the shares in its US operating subsidiary, Trellus Health Inc. However, it warned that even if a sale is successfully concluded, shareholders are not expected to receive any return.
The move follows months of funding difficulties and a long, drawn-out process of trying to secure the business.
Trellus, which had cut its monthly cash burn to around $300,000 by March, repeatedly extended its cash runway through cost-cutting, including pay reductions and renegotiated supplier contracts, but was unable to secure the long-term funding it needed, as its convertible loan facility was constrained by market conditions.
Shares were suspended in May after losing almost all of their value compared to recent highs.