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Equipmake Holdings PLC on Friday said it will consider the sale of the company as part of a formal review of its corporate strategy.
The Norfolk, England-based company is an electrification solutions developer for the automotive, aerospace, marine, construction and bus markets.
The company said it does not have confirmation from an unnamed major automotive supplier when a new $6 million licence agreement may be entered into, if at all.
Equipmake will therefore begin a strategic review to ‘plan for all eventualities’, as the cash resources of the group will only last until March if the potential licence agreement is not signed.
The company said the review will cover a range of options, including raising additional equity capital from existing shareholders and new investors, seeking a partner to support the company’s growth or the sale of the company or a merger with another public entity.
It also said it will continue to review the company’s strategy, cost base and allocation of cash resources.
Equipmake said: ‘The board will undertake the strategic review in a timely but structured manner, evaluating merits of each of the outcomes above, and potentially others that may arise, in defining the future corporate strategy for the company.’
The company confirmed it is not currently in discussions with any potential offeror, and will make further announcements as appropriate.
In October, Equipmake said its annual loss widened as expenses nearly tripled in its most recent financial year. The company’s current cash balance is £1.9 million.
Equipmake shares were untraded on the Aquis Exchange on Friday, and were last quoted at 1.99 pence.
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