A flurry of UK tech and bioscience companies are rushing to reassure investors their money is safe following the collapse of SBV
Dozens of British tech and bioscience companies rushed to reassure investors their money was safe after the collapse of Silicon Valley Bank (SBV) and the last-minute bailout of its UK branch by HSBC.
Two medical technology companies on London’s junior market, AIM, suspended trading for several hours as they rushed to clarify their cash position.
Diaceutics, which is developing technology to help with lab testing and data collection, revealed around £22m of its £22.2m cash balance was held in SVB accounts and that he had not been “unable to access” the funds.
Diaceutics, which is developing technology to help with lab testing and data collection, revealed around £22m of its £22.2m cash balance was held in SVB accounts
The company said while it hoped the cash would become available, the crisis had inflicted a “significant impact” on its cash position and “material uncertainty” about its ability to spend.
As a result, Diaceutics requested a halt to trading in the shares as it attempted to access cash held by SVB and explore “alternative funding options”.
Trading in the shares was subsequently restored. Medical imaging group Polarean reported around £10.3m of its £11.5m cash balance was held in SVB as well as £1.3m in a current account at the bank.
The company said it had requested a trading halt as it sought “further clarification” on the state of its cash reserves.
More than 40 London-listed companies have released updates on their dealings with SVB to ease investors’ nerves.
Customer review website Trustpilot said SVB had been its “main banking partner” but was confident its cash would hold up.
Others who have disclosed cash holdings in SVB accounts include Naked Wines, magazine publisher Future and FTSE 250 Auction Technology Group.