Perth-based biotechnology company Stirling Products is teetering on the brink of administration as it cans a $960,000 capital raising and enters talks for the possible disposal of its assets.
The announcement is below:
Stirling Products (ASX:STI) advised shareholders on 21 November 2008, that the Directors of Stirling Products Limited had entered into a mandate with RM Corporate Finance Pty Ltd ("RM Corporate Finance") for them to act as lead manger in the placement of fully paid ordinary shares and convertible notes to raise up to $960,000 before expenses. The placement of shares was to be made pursuant to placement facility of 35,000,000 shares approved by shareholders at the company's Annual General Meeting.
RM Corporate Finance have not been able to complete the placement on the terms set out in the mandate and accordingly this mandate has been terminated, however the company continues to liaise with RM Corporate Finance in relation to alternative arrangements.
In addition to this, the company has recently received alternative proposals for the ongoing funding of its business including the potential to raise funds by raising capital or the possible disposal of some of its assets.
These proposals are in the preliminary stages of negotiation and development. If the company is unable to conclude these negotiations or raise capital from other sources, there is the possibility that the Directors may be forced to place the company into voluntary administration.
Directors will provide the market with further updates as they progress the proposals before them.
The Directors also advise that Dr Calvin London has been appointed as an interim Company Secretary of the company following the resignation of Mr Simon Robertson from the position. Mr Robertson will continue to work with the company in a consulting capacity as required.
