Catalist-listed medical technology company Biolidics 8YY says United Overseas Bank U11 (UOB) will cease to be its sponsor after Dec 31.
In a Sept 28 bourse filing, Biolidics says it has received written notification from UOB that it will be terminating the continuing sponsorship agreement (CSA) dated Dec 11, 2018 between the company and the bank, citing “commercial reasons”.
The CSA was also supplemented by a renewal letter dated Nov 22, 2021.
According to Biolidics, UOB has confirmed that it is not aware of any non-compliance with the Catalist rules by the company.
UOB shall remain as the company’s sponsor until Dec 31, “or such other date as may be mutually agreed with the company, the new sponsor of the company and/or the [Singapore Exchange Securities Trading Limited]”.
The company is currently “actively seeking” to appoint a new sponsor and will provide further updates as and when there are material developments on this matter.
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Incorporated in July 2009 and listed in December 2018, Biolidics was formerly known as Clearbridge BioMedics. The company focuses on the development of “cell enrichment systems” which, when combined with other analytical tests, have a “wide range of applications” for cancer diagnosis, prognosis, treatment selection and treatment monitoring, it says.
Looking back at Biolidics’ financials, the group was somewhat a beneficiary of the Covid-19 pandemic, as it saw revenue skyrocket in FY2020 ended December 2020.
Revenue in FY2020 notched a record high of $8.9 million, compared to just $1.44 million in FY2019. This has since tapered down, as the Covid-19 test kit provider saw revenue decline in FY2021 to $2.3 million and $2.5 million in FY2022.
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However, the group has consistently been in the red, as it has recorded at least five consecutive years of losses, with FY2022's losses standing at $9.4 million.
The Covid-19 boom helped boost the counter's share price, as it surged to an all-time high of 43 cents in May 2020. This has also since tapered down and Biolidics is currently trading at an all-time low of 1.3 cents as at Sept 28.
