ReNeuron Group PLC (AIM:RENE, OTC:RNUGF) said it is seeking potential new investors to enable the company to trade as a going concern following an exit from administration.
However, there is a discrepancy between the amount it can pay existing creditors and the amount they are seeking, said the statement.
Discussions are ongoing with potential funders but Reneuron said it expects the completion of a proposed fundraise would be conditional on the company exiting administration retaining sufficient funds to settle all of its known creditors.
Any new funds raised would be used by the company for its working capital requirements going forward post-administration, said the statement.
Costs cutting in the meantime has seen the redundancy of several of the company's employees as well as other measures.
Key senior management, including the Board of Directors and Randolph Corteling (Chief Scientific Officer), have remained with the business.