from the age

Ventracor seeks capital partner

January 2, 2009 - 11:28AM

Heart implant maker Ventracor Ltd has slowed spending to preserve cash as it seeks a partner to take a stake in the company to fund the final stages of developing its VentraAssist device.

Ventracor told the Australian Securities Exchange on Friday that it was not aware of anything specific which might account for the jump in its share price to 6.7 cents on December 31 from 4.4 cents the week before, and its above-average trading volumes.

The company, which announced in December that it was reviewing its strategic direction, said expressions of interest from potential buyers were not due for several weeks, so Sydney-based Ventracor could not announce anything more at this time.

Ventracor has cash reserves of $9.3 million, after spending $8.7 million during the six months to December 2008, compared with $15.5 million it spent in the prior corresponding period.

"The main issue confronting the Company at this time is cash liquidity and the need to obtain additional funding in order to continue operations," Ventracor said in the statement.

The company said its net loss for the half year to December would be significantly smaller than the previous period because of the reduction in expenditure to preserve cash.

http://news.theage.com.au/business/ventracor-seeks-capital-partner-20090102-78tt.html