HealthBeacon shares have been suspended from the Euronext Growth Dublin index after the board of the medtech firm warned it is in a "highly constrained financial position" and said it "requires additional financing urgently in order to continue as a going concern".
The company said it now only has sufficient cash to continue to trade until the last week of October, following a deterioration in its short-term working capital position.
Its shares dropped over 63% in Dublin trade this afternoon.
At the start of October HealthBeacon had said that at the end of September it had around €500,000 in net cash on its balance sheet which, along with expected working capital changes, would give it enough cash to continue to trade until the middle of November.
"Since the announcement on 5 October 2023, the Company has explored various financing options to improve its short-term working capital position as well as longer term funding requirements including discussions with key stakeholders and other providers of capital, and explored the potential sale of its business divisions," the company said in a statement to the market this morning.
"These financing alternatives have not to date been concluded, however, the Company continues to pursue funding solutions."
The company added that it continues to explore all options to raise finance and otherwise to maximise the interests of creditors and other stakeholders.
At the end of September, the company issued a sales warning following delays in rolling out major contracts in the US.
It also revealed at that point that founder, Jim Joyce, would be stepping down as Chief Executive.
He has been replaced on an interim basis by Rebecca Shanahan, an independent non-executive director, but Mr Joyce has remained on as an adviser to the board and a non-executive director.
HealthBeacon has developed solutions aimed at assisting patients to adhere to the schedules for injectable medications, including a smart sharps bin.
The company floated on the Euronext Dublin in December of 2021.
Before today's losses, the company's shares have sank 90% since the middle of September.
