Rex Bionics needs external funding, in talks with a strategic partner

Shares in Rex Bionics fell almost 70% after it said it would likely need external funding by the end of April to remain as a going concern, and at the same time outlined strategic talks with a "substantial" international partner and a potential AIM de-listing.

"Despite intensive efforts over recent weeks on the fundraising and discussions with existing and new public market investors, while the company had received some indications of funding support, these have been insufficient to cover the minimum requirement," said Rex Bionics.

The robotic exoskeleton specialist estimated it would likely need external funding by the end of April 2017 in order to remain as a going concern. As such, it was in talks regarding an alternative strategic option.

Rex Bionics said it was in talks, in partnership with a third party private investment fund manager, to set up a new private development vehicle, or operating company, into which the company would contribute essentially all of its operating business.

The investor would contribute sufficient funding to the operating company in order to develop the new Rex product prototype with the strategic partner, Rex Bionics said.

As part of the transaction, Rex Bionics would sell its operating business to the operating company in exchange for a percentage equity interest in that private vehicle.

The investor would not be investing the development capital directly in the parent company, Rex Bionics Plc, but as part of the transaction the company was discussing some limited funding to be provided by the investor for Rex Bionics Plc's short-term working capital needs.

If the deal did proceed, one of the matters Rex Bionics intended to consider would be whether, and for how long, it would be appropriate to maintain its admission to trading on AIM.

At 14:39 GMT, shares in AIM-quoted Rex Bionics were down 69.23% to 4p.