Shares in genedrive PLC (AIM:GDR) surged 22% to 1.04p after the diagnostics group said it is in discussions with major shareholder David Nugent over a possible £1 million loan to support the business.
The AIM-listed company, which specialises in point-of-care genetic tests that help doctors tailor drug treatments to individual patients, said Nugent, who holds around 16% of its shares, has indicated a willingness to make a direct cash injection through a shareholder loan.
Talks are ongoing and no terms have yet been finalised, with the company cautioning that there is no certainty funding will be secured.
Even so, the update was welcomed by investors as a sign of confidence from a significant backer following recent shareholder meetings focused on Genedrive’s financial position.
The company said it will continue constructive discussions with Nugent and provide further updates as negotiations progress.