Biotechnology company Polartechnics placed in administration

After failing to find funding to support its growth, Sydney-based life sciences company Polartechnics has been placed in administration.

The directors of Sydney-based life sciences company Polartechnics have placed the company in administration after being unable to find a funding source to support the growth of the business.

The board appointed Jonathan McLeod of Brisbane insolvency firm McLeod Partners as administrator late on Friday.

Polartechnics has a range of medical devices for the screening of cervical cancer and other sexual diseases, including its key products TruScreen and CerviScreen.

The company was preparing to launch its CerviScreen self-assessment product for female consumers in the next six months, ahead of a possible launch in the United States.

But for now, the money has run out.

In a statement to the Australian Stock Exchange, the company has been considering various funding options over the last few months

In mid-July, it was forced to abandon an attempt to buy fellow life science company Fermiscan Holdings, which develops breast cancer diagnostic technology. The deal would have allowed Polartechnics to access the $7.5 million in cash on Fermiscan’s balance sheet.

The board says it has formed the view the Polartechnics needs time to restructure its operations to reduce the amount of working capital it needs and that the launch of CerviScreen should be delayed “until dedicated project funding is found”.

“The board therefore believes that the best way forward is for the company to voluntarily appoint an administrator to carry out the restructure of its operations.”

Jonathan McLeod was unavailable for comment prior to publication.