WideCells Group PLC (LON:WDC), the healthcare services company focused on providing stem cell services and ground-breaking insurance for stem cell treatment, has today provided the following update on its financial position.
As announced on 5 June 2018, the Group has received placing commitments for gross proceeds of at least £1.8 million and has released its audited results for the year ended 31 December 2017. The Directors have calculated that the Group needs to raise a minimum of £1.5 million to enable the Group to continue to operate as a going concern. Completion of the Placing will satisfy the working capital requirements of the Group. The Directors anticipate that completion of the Placing will take place before the end of June 2018, in line with the Group’s announcement on 10 May 2018.
Should the Placing not complete in accordance with its terms by 29 June 2018, or alternative funding found, the Group would not be able to continue trading as a going concern and would be obliged to cease operations which could include administration, receivership, liquidation or other insolvency proceedings.
Additionally, the Group provides the following updates regarding its financial position.
There have been significant changes in the financial condition, trading position and operating results of the Group subsequent to 31 December 2017 (being the date to which the most recent audited results for the Company were prepared) and these are listed below.
As at 8 June 2018, the latest practicable date when preparing this information, the Group had a net bank overdraft, after offsetting positive cash balances, of £614,533 against an overdraft facility of £624,500 which is due to be reviewed on 29 June 2018.
In order to assist it with managing its current working capital requirements, the Group has:
· since 1 January 2018, arranged interest free loans from Directors of approximately £120,000. Such loans are repayable on demand after 1 July 2019;
· negotiated payment terms with existing trade creditors;
· negotiated terms with its banks to extend its facilities; and
· revised its current growth plans downwards and cut back on all discretionary expenditure to conserve cash.
WideCells Group Plc will update the market with the next steps in the completion of the Placing in due course.
