Belluscura kickstarts review to strengthen capital position

(Sharecast News) - Belluscura's share price plummeted by a quarter on Friday after the medical device group said it was conducting a strategic review to "substantially strengthen its capital position". The company, which develops oxygen enrichment technology spanning broad industries and therapies, said it experienced challenges in late February and March in sourcing product.

Despite a record sales month in April, the main thing holding back the company from turning profitable is access to sufficient working capital to fund bulk orders, which will significantly reduce the unit cost of goods sold.

As a result, Belluscura is now looking at a "range of options", including potential strategic investment, partnerships, alternative funding structures and other corporate initiatives.

The review, which the company stressed does not include a sale, is aimed at "supporting both the company's short-term cash requirements and its longer-term growth and accelerating its path to sustainable profitability".

"For the avoidance of doubt, the strategic review is not for the purposes of soliciting offers for the company pursuant to the City Code on Takeovers and Mergers," it said.

Shares were down 24.6% at 0.51p by 0911 GMT.