InnoVet Inc., which develops animal health care products, said lastweek that unless it obtains new funding soon, it will be forced to cutback operations.
The West Palm Beach, Fla. company said it had only about $50,000in cash and was in danger of being dropped from the American StockExchange, which halted trading in InnoVet last Wednesday.
An InnoVet spokesman said the company has had discussions about apossible merger, but in the meantime is attempting to generate cashby seeking a buyer for more than 780,000 shares in Enviromed plc, aLondon-based medical diagnostic maker.
Innovet received those shares and is due another 197,000 shares aspayment for Enviromed's purchase of InnoVet's subsidiary,Cambridge Veterinary Sciences Ltd., of Cambridge, England.
Enviromed was trading at $1.57 per share on the London StockExchange when the acquisition was completed in December and thestock has since risen 8 cents per share.
In addition to bolstering its cash position, InnoVet said it must sellthe Enviromed shares to repay an $831,000 loan from the NationalWestminster Bank in Cambridge, England. Enviromed shares wereused to get the loan and payment was due March 9.
InnoVet said a $950,000 loan secured last July from shareholders hasbeen repaid.
As of Friday, InnoVet said it had not discontinued any of itsprograms. Last year the company began selling off subsidiaries inorder to conserve resources and concentrate on research anddevelopment of immune stimulants and sex selection technology forthe livestock industry. _ Charles Craig
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