ANGEL Biotechnology Holdings appointed administrators last night and suspended trading in its shares.
The AIM-listed company, which provides contract manufacturing for the biotechnology and pharmaceutical industries, had warned last month it would run out of cash by the end of March unless two partnership deals could be struck.
One of those involved a consortium of international organisations, which had been interested in establishing a strategic relationship with Angel's contract manufacturing business.
Loading article content
But those discussions were "terminated" causing the company – based at the Pentlands Science Park in Midlothian and a large facility at Cramlington, Northumberland – to request the suspension of its shares.
A proposed joint venture with Russian company MMH, which has been mooted since autumn 2011, is also now likely to be abandoned.
The administration also affects subsidiary Angel Biomedical, which was formed to run a collagen manufacturing site in Glasgow.
Angel chairman Nicholas Smith expressed "disappointment and sadness" at what had happened. KPMG was appointed as administrator to the company and is assessing the financial situation while looking for a buyer.
All 22 Angel staff are being retained.
Blair Nimmo, head of restructuring for KPMG in Scotland, said: "Angel Biotechnology and Angel Biomedical have worldwide reputations for the quality of their production facilities, understanding of global regulatory regimes, and being at the cutting edge of pharmaceutical and biotechnological manufacturing.
"We are hopeful that the companies, and their employees, will have a positive future given their unrivalled credentials and quality of service."
Angel reported a £1.3 million loss in the 12 months to March 31, 2012, but had £580,255 of cash at that point.
In unaudited interim results for the six months to September 30, 2012 the loss was £2.8m, although more than £2m was due to the costs associated with setting up the MMH joint venture.
At that point cash and cash equivalents were at £496,000.
Angel was floated in 2005 with shares trading at 1.5p. Prior to suspension they were at 0.05p.