Rex Bionics stock almost halves in value after sales warning 22 Dec 2014
Related articles
- NZ consumers grow more upbeat, may resume spending Business
- Knowles quits as CEO of KiwiBank Business
- NZ migration bolstered by British invasion Migration
- NZ manufacturing activity reaches highest since 04 Business
- NZ dollar hits 22-month high vs euro Business
- Budget provides $321m for RS&T activities News
- OceanaGold finds new gold deposits at Fraser mine Business
- Transpower gets go-ahead for $170m SI upgrade Business
- NZ home sales creep up in March, still subdued Property
- NZ economy expands at fastest pace in two years Business
Rex Bionics stock almost halves in value after sales warning
By Paul McBeth
Dec. 22 (BusinessDesk) - Rex Bionics, the local company which listed on the London Stock Exchange’s growth-orientated AIM market in May, almost halved in value last week after it warned commercial sales will take longer than expected to eventuate.
The London-based company, which builds robotic exoskeletons that allows wheelchair users to walk, expects "only a nominal amount" of sales in the year ending March 31, with "some improvement" in the first half of the 2016 financial year, "with a stronger growth trajectory" towards the end of that period, it said in a statement last week. The shares last traded at 70 British pence, almost half the 138 pence they traded at before the release and valuing the company at 9.81 million British pounds.
"It has, however, become increasingly clear that, despite professional and focused effort in target markets, the sale of Rex on commercial terms and on any scale to healthcare institutions requires clinical data on the health benefits, as distinct from, albeit very positive, wheelchair user feedback," the company said. "We are taking steps to generate as rapidly as possible the clinical data required to support the clinical and quality-of-life benefits that we believe Rex can deliver, but this will take some time."
Rex raised 10 million pounds for a net 8.8 million pounds in its reverse takeover and listing in May, to fund the roll-out of its robotic exoskeletons for wheelchair users with increased sales and marketing and a scaling up of its Auckland-based manufacturing. As at Nov. 30 the company had 5.8 million pounds in cash.
Among steps Rex is taking to accelerate commercial sales, it anticipates completing the first of its clinical trails to convince the rehabilitation community of Rex's benefits in early 2015, and has brought forward a programme to win US Food and Drug Administration approval for at-home use in the world's biggest economy.
Before the May listing, Rex raised $4.1 million through share issues and $2.4 million in short-term borrowings, and also received some $2.9 million in government funding for research and development, a condition of which requires Rex Bionics’ production to stay in New Zealand until 2017.
The company was one of 23 firms awarded R&D growth grants by Callaghan Innovation in August, which the Crown entity estimated would be worth more than $41 million over three years. The grants require a firm to spend at least $300,000 and 1.5 percent of revenue on R&D in New Zealand.
Rex counts Jenny Morel-managed No 8 Ventures as its biggest shareholder with about 16 percent of the company, down from 38 percent before the AIM listing.
(BusinessDesk receives funding from Callaghan Innovation to write on the commercialisation of innovation.)
(BusinessDesk)
News
Hilary Timmins' Award-Winning UK Documentary Series To Inspire NZ Students
29 Jun 2020 Education
Dream Catchers, produced and directed by Hilary Timmins, celebrates the success stories of more than thirty inspirational New... more
New Zealand reaffirms support for Flight MH17 judicial process
7 Mar 2020 News
Ahead of the start of the criminal trial in the Netherlands on 9 March, Foreign Minister Winston Peters has reaffirmed the need to... more
Business
NZ Government's Economic package to fight COVID-19
17 Mar 2020 Business News
The Coalition Government has launched the most significant peace-time economic plan in modern New Zealand history to cushion the... more
NZ Government announces aviation relief package
19 Mar 2020 Business News
Transport Minister Phil Twyford today outlined the first tranche of the $600 million aviation sector relief package announced earlier... more
Living
Diversity was Key at New Zealand Trade Tasting in London
6 Jun 2022 Food & Wine
New Zealand Winegrowers Annual Trade Tasting was recently held in London, on Wednesday 4 May, in Lindley Hall.
It was the first... more
Kiwi author stuns Behind the Butterfly Gate
12 Jan 2022 Arts
Hidden behind the Butterfly Gate is where the secret has been kept for 76 years...
New Zealand writer Merryn Corcoran’s... more
Property
Fairer rules for tenants and landlords
17 Nov 2019 Property
17 NOVEMBER 2019
The Government has delivered on its promise to the over one million New Zealanders who now rent to make it fairer... more
New Zealand Government will not implement a Capital Gains Tax
17 Apr 2019 Property
The Coalition Government will not proceed with the Tax Working Group’s recommendation for a capital gains tax, Jacinda Ardern... more
Migration
Boosting border security with electronic travel authority – now over 500,000 issued
19 Nov 2019 Migration
19 NOVEMBER 2019
We’ve improved border security with the NZeTA, New Zealand Electronic Travel Authority, which helps us to... more
Christchurch reinstated as refugee settlement location
18 Aug 2018 Migration
18 AUGUST 2018
HON IAIN LEES-GALLOWAY
The announcement that Christchurch can once again be a settlement location for refugees... more
Travel
Gallipoli Anzac Day services cancelled
19 Mar 2020 Travel & Tourism
The New Zealand and Australian Governments have announced this year’s joint Anzac Day services at Gallipoli will be cancelled... more
New Zealanders advised not to travel overseas
19 Mar 2020 Travel & Tourism
New Zealanders advised not to travel overseas
more
Sport
The Skipper's Diary: Sir Richard Hadlee honouring his father and NZ's Forty-Niners
27 Oct 2019 Cricket
NZNewsUK London Editor Charlotte Everett spoke to Sir Richard Hadlee about why he’s chosen to publish his father’s... more
PREVIEW: All Blacks v England semi-final
26 Oct 2019 Rugby
The two most convincing quarterfinals winners are set to square off in a semifinal showdown for the ages when the All Blacks meet old... more
Columns
Gordon Campbell on the Gareth Morgan crusade
11 Nov 2016 Opinion
Gordon Campbell on the Gareth Morgan crusade
First published on Werewolf
The ghastly likes of Marine Le Pen in France and Geert ... more
Gordon Campbell on the US election outcome
10 Nov 2016 Opinion
Column - Gordon Campbell
Gordon Campbell on the US election outcome
Well um.. on the bright side, there (probably)... more
Kiwi Success
Congratulations to Loder Cup winner
26 Sep 2018 People
25 SEPTEMBER 2018
The Loder Cup, one of New Zealand’s oldest conservation awards, has been awarded to Robert McGowan for 2018... more
Appointments to New Zealand National Commission for UNESCO
16 Aug 2018 Appointments
16 AUGUST 2018Appointments to New Zealand National Commission for UNESCO
HON JENNY SALESA
Associate Education Minister Jenny Salesa is... more
Recruitment
Historic pay equity settlement for education support workers
14 Aug 2018 Recruitment
14 AUGUST 2018Historic pay equity settlement for education support workers
RT HON JACINDA ARDERN
HON CHRIS HIPKINS
Prime Minister
The... more
Historic pay equity settlement for education support workers
22 Aug 2018 Recruitment
14 AUGUST 2018Historic pay equity settlement for education support workers
RT HON JACINDA ARDERN
HON CHRIS HIPKINS
Prime Minister
The... more