Rex Bionics stock almost halves in value after sales warning   22 Dec 2014

Article - BusinessDesk

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)

Add a comment

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 By Rt HON WINSTON PETERS
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 By RT HON JACINDA ARDERN
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 By Hon Phil Twyford
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 By Charlotte Everett
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 By Minister Kris Faafoi
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 By RT HON JACINDA ARDERN
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 By Hon Iain Lees-Galloway
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 By RT HON JACINDA ARDERN
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 By Charlotte Everett
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 By Hon Eugenie Sage
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 By RT HON JACINDA ARDERN
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 By RT HON JACINDA ARDERN
14 AUGUST 2018Historic pay equity settlement for education support workers RT HON JACINDA ARDERN HON CHRIS HIPKINS Prime Minister The... more