Clock ticking on Vphase amid funding woes

BOSSES of Vphase, the Cheshire energy saving device company, say there has been “insufficient demand” from institutional investors for its fund-raising plans, and the company could be wound-up if no solution is found.

Shares in the company were suspended on AIM on Thursday pending clarification of its funding position.

In an update the company said: “despite extensive attempts to secure further funding, it has received insufficient demand to raise equity capital through a non pre-emptive placing with institutional investors.”

Vphase, which is based in Ellesmere Port,  said its directors are continuing to seek options to preserve the value of the business, including raising funds by way of debt or equity and the sale of the business or its assets.

With no certainty over such measures materialising the company says it only has enough money left to operate “for a few weeks at most”.

“The board therefore continues to assess its ability to continue trading and in the absence of further funding it will take steps to wind up the Sompany. Shareholders should be aware that this may result in little or no value being attributable to the shares of the company. A further announcement will be made in due course.”

Vphase, which has invented a device to reduce electricity bills, said uncertainty over the government’s green energy policies had dampended demand in recent weeks, which had prompted a fall in the value of its shares, which were trading at less than 1p per share before their suspension.

The company was spun-out of Capenhurst-based Energetix Group, which retained a 27% stake in the business.