Receivers have been appointed to an Irish arm UK firm 4D Pharma after the parent company went into administration last summer.
The assets of the formerly-AIM listed group are being sold off by the administrators after the company’s secured creditor said it would no longer support an exit from administration or a proposed $15m (€14m) equity raise.
The pharmaceutical group developed live biotherapeutic products. Its listing on the Alternative Investment Market was cancelled last week.
UK-based Interpath Advisory – which also managed the UK administration – has just appointed Ken Fennell and Andrew O’Leary as joint receivers over 4D Pharma (Cork). It employs 10 people.
Following the administration of its parent company, the directors undertook an exploration of a number of options to safeguard the future of the business in Ireland, according to Interpath.
“Regrettably, no solution was forthcoming, and the directors took the difficult decision to invite the appointment of the joint receivers,” it said.
“Our immediate priority is to take steps to secure the company’s assets, while seeking to gather further information about the company’s financial position,” said Mr Fennell.
The most recent set of accounts for the Ireland-based unit show that it made a near €600,000 loss in 2020, which brought its accumulated losses to €4.3m. It had tangible assets of just €40,000.
In October, Armistice Capital Master Fund acquired the secured debt under which the group was placed into administration. Armistice is the sole secured creditor of the company and the party with the primary economic interest in the administration.
A proposed exit from the administration process was to be funded primarily by an equity raise subscribed to by Armistice for an aggregate $15m. But Armistice said last month it would no longer support the use of 4D Pharma’s cash assets to work towards an exit from administration and that the equity raise would not be provided.