Calluna teeters on the brink
Urgent search for buyer or partner
Desparate times at Calluna, the alway's jam tomorrow company, which issued a shock profit warning today. Unless it finds a buyer -- and quick -- the mini-hard disk drive manufacturer looks like it's going to go bust. Calluna's statement was prompted by a recent rise in its share price. The company is "urgently considering a range of options including entering into trade partnerships and seeking potential purchasers for the Company, its trading subsidiary or its assets". A batch of dud components meant that sales for type II drives were "well below forecast for October". This problem is now resolved, but the company's tiny cash reserves have been seriously depleted. Calluna also admits it is "currently encountering difficult trading conditions". The company has lived a hand to mouth existence for at least a couple of years. It's tapped shareholders for two rights issues. It's current difficulty is not really a surprise. You can read our article Calluna plummets on profit warning posted in February to see why.
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