Deltex Medical Group PLC on Monday said that its shares have been suspended from trading on AIM, pending clarification on its financial position.

Deltex Medical is a Chichester, England-based manufacturer of fluid management devices. Its shares last traded at 1.10 pence on Friday in London.

The firm said that as a result of unexpected delays and events, its cashflows have come under pressure. Its cash balance is currently around £180,000 and all its loan facilities are fully drawn.

As a result, Deltex said its working capital projections now indicate a need for additional funding by mid-July.

It confirmed that is exploring additional sources of funding, including discussions with its lenders and major creditors, but lamented that these have not been successful.

Consequently, Deltex said it had requested its shares to be suspended.

Deltex’s major delay is that its new monitor has not yet been launched on the market, as the necessary steps to complete the technical file which would enable the new monitor to be launched are yet to be finalised.

In addition, the company said it is waiting on a third party review of its safety test report to complete the product technical file, a regulatory requirement before such a product can be sold.

Deltex said, as a result of customers waiting for the new monitor to be available, trading in its current financial quarter has been weaker than expected.

In addition, Deltex said it had received no further information on a national tender for haemodynamic monitoring equipment in conjunction with one of its Latin American distributors, which involved the current generation TrueVue monitor, nor an expected material order.

Copyright 2023 Alliance News Ltd. All Rights Reserved.