ALIZYME PLC Trading Update
Cambridge UK, 29 June 2009: Alizyme plc (LSE:AZM) ("Alizyme" or "the Company") today gives an update on the Company's financial position.
Alizyme has licensing and development agreements with regard to COLAL-PRED® with various parties. These agreements provide for payments to Alizyme tied to the achievement of specified milestones and royalties. As previously reported, the Company is dependent on the milestone income in order to continue as a going concern. As a result of potential significantly increased funding obligations under these contracts and the status of ongoing discussions with various parties to mitigate the potential impact on the Company these funding obligations may have, there is now material uncertainty as to the receipt of milestone payments due. Accordingly, the Company does not now expect to have sufficient funding to last beyond the end of August 2009 and will be unable to continue as a going concern without the raising of additional funds. The Company is in discussions with its advisers in relation to such funding. In the absence of additional funds, the Company may face going into administration or liquidation.
The Board of Alizyme is reviewing the overall strategy and structure of the Company, and has implemented a consultation process with its employees with respect to a redundancy programme where it is anticipated that the number of employees will be significantly reduced.
The Company, with its advisers, is also considering the suitability of the Company's current main market listing given its market capitalisation and limited resources.