HEG raises cash, but needs more

CASH-strapped medical research company Healthcare Enterprise Group has raised £260,000 by selling shares in a company called First Aid Holdings.

But it has warned it may not be able to continue if it cannot raise further funds from investors.

In December the Warrington-based firm negotiated an extension on the repayment of a £500,000 loan and refinancing talks are still taking place.

In a statement the company said: “Whilst these discussions have yet to reach a conclusion, the directors remain confident that further funds will be raised although there can be no guarantee that additional funds will be secured.”

HEG cut its holding in First Aid Holdings, which sells first aid and healthcare products, from 34.3% to 24.9% to generate working capital. The business warned it may be forced to sell other investments to raise cash.

The statement added: “If the company is unable to raise sufficient cash from such sales, the directors may have no alternative but to consider whether it is appropriate for the Group to remain as a going concern.”

Shares in the AIM-listed business were suspended on December 22 after the company said it could not file its accounts due to ongoing fund-raising talks.