Diaceutics shares resume trading after HSBC buys SVB UK

The AIM-traded firm said the update followed the acquisition of Silicon Valley Bank UK (SVB UK) by HSBC UK, which was confirmed by the Bank of England.

SVB UK's business was set to continue to operate normally, with all depositor money secure.

Diaceutics had £19.8m of cash and cash equivalents on deposit with SVB UK, with the firm requesting that access to those funds be restored.

The board said that would remove uncertainty around its ability to meet its working capital requirements, with Diaceutics also confirming that its strategy to accelerate investment into the business would be reinstated.

It added that it was also seeking to access £2.2m held with Silicon Valley Bank US, following the announcement over the restoration of access to deposits on 12 March.

Diaceutics said it expected to be able to access those funds in the near term.

The board said it did not expect to make any further announcements on the issue unless the situation materially changed.

It said it had already started the process of diversifying its banking relationships to avoid similar issues in the future.

“We are pleased that the situation has been swiftly resolved with no disruption to our trading and prospects,” said chief executive officer Peter Keeling.

“With our funding position restored, we remain focused on delivering on our considerable opportunity.”

At 1159 GMT, shares in Diaceutics were down 1.33% at 111p.

Reporting by Josh White for Sharecast.com.