Energy technology company Eqtec has put itself up for sale after warning of a shorter-than-expected cash runway.
The company, which has seen its shares sink some 84% over the past twelve months, last year raised £1.6m from existing shareholders.
But the firm, which now has less than $1m in cash resources, said “the current cash runway, based on current cash resources, and before any potential cost savings, is now expected to be shorter than previously outlined at the time of the 2024 fundraise.”
Eqtec added in a statement on Monday: “The board has unanimously concluded that it would be appropriate to investigate the sale of the Company and therefore has now decided to commence a formal sale process.”
Eqtec has been developing advanced drilling technology known SABER. In December, the company begun a demonstration test of its SABER tool at the industry test facility in Catoosa, Oklahoma, to test operational functionality. As a result of this testing the company identified a number of engineering modifications.
“The board continues to believe in the quality of the SABER technology and the compelling market opportunity driven by wider market conditions and industry demand for a low cost to operate rotary steerable system.” the company said in a statement.
“The board remains positive that a solvent solution can be found.”
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