Factor Therapeutics back to square one after proposed vet imaging deal falls over
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Long suffering shareholders of Factor Therapeutics (ASX:FTT) have been dealt another blow with a transaction that would’ve seen a new future for the company called off.
In 2018, a clinical trial on a wound-dressing drug Factor then held failed, leading to a near wipeout of the share price.
In the last six months, Factor Therapeutics shareholders had hope the company finally found a new life.
In July Factor entered negotiations with a US vet imaging technology company in hopes a deal – more likely, an acquisition – could be done.
Shares were suspended pending negotiations for the vet imaging deal.
Today, shareholders found out talks had failed.
“Due to the considerable prolongation of the transaction and changes in business circumstances in the interim, the parties have not been able to finalise acceptable commercial terms,” it said.
“As a result the parties have elected by mutual agreement to cease negotiations with no further penalty.”
Factor Therapeutics also said the ASX had not given it in-principle advice about what listing rule matters it would need to comply with before being re-admitted.
The board told shareholders it was “considering all options relating to the future of the company”.
However, shares would continue to be suspended until it had satisfied ASX requirements to resume trading.
The company will face its shareholders on a briefing call scheduled for 8am Wednesday.
Under ASX Listing Rules companies in suspension for two years are delisted, giving Factor Therapeutics another 18 months to find another business.