Rex Bionics, the New Zealand company listed on the London Stock Exchange's growth-oriented AIM market, almost halved in value last week after it warned that 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.
The shares last traded at 70 British pence, almost half the 138p they traded at before the release and valuing the company at 9.81 million ($19.8 million) .
"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.
Rex raised 10 million for a net 8.8 million in its reverse takeover and listing in May, to fund the roll-out of its robotic exoskeletons with increased sales and marketing and a scaling up of its Auckland-based manufacturing. As at November 30 the company had 5.8 million in cash.
