BSF Enterprise PLC (LSE:BSFA), the company that develops engineered tissue products, saw its shares drop more than 30% after it pulled a proposed £15 million equity fundraise and capital reorganisation, scrapping a deal first outlined late last month as it looks for alternative financing instead.
The company, in a statement, said the transaction had been mutually terminated and that the parties would now seek to unwind the agreements tied to it.
BSF noted that a £300,000 convertible loan note will stay in place on the same terms, with its duration extended by 12 months. Under that arrangement, the loan can be repaid in cash at the end of the period, or the noteholders can convert at the price set in BSF’s next capital raise.
It added that it has already opened discussions with other parties over new funding at both parent and subsidiary levels, including for Lab-grown Leather Ltd and Kerato Ltd.
BSF said the process is ongoing and that it is aiming to secure a new, favourable fundraising option in the coming weeks.
In London, the stock was down 0.43p or 34% to 0.83p.