A wave of UK technology and life sciences companies rush to reassure investors their money is safe in the wake of the SBV collapse
Dozens of British technology and life sciences companies rushed to reassure investors that their money was safe following the collapse of Silicon Valley Bank (SBV) and HSBC’s last-minute bailout of its UK arm.
Two medical technology companies in London’s junior market AIM suspended trading for several hours as they rushed to clarify their cash positions.
Diaceutics, which is developing technology to run lab tests and collect data, revealed that about £22 million of its £22.2 million cash balance was in SVB accounts and it was ‘not able to access’ the funds.
Diaceutics, which develops technology to run lab tests and collect data, revealed that around £22m of its £22.2m cash balance was in SVB accounts
The company said that while it was “hopefully” the cash would become available, the crisis had a “significant impact” on its cash position and “material uncertainty” about its ability to spend.
As a result, Diaceutics requested that trading in the shares be suspended as it attempted to access SVB’s cash and explore “other financing options.”
Trading in the shares was later restored. Polarean, the medical imaging group, reported that around £10.3m of its £11.5m cash balance was held in SVB, as well as £1.3m in a current account with the bank.
The company said it had asked for a trading suspension while it sought “further clarification” about the state of its cash reserves.
More than 40 London-listed companies published updates on their relationships with SVB to calm investor nerves.
Customer review website Trustpilot said SVB had been its “principal banking partner” but was confident the liquidity would hold.
Others who disclosed cash in SVB accounts included Naked Wines, magazine publisher Future and FTSE 250 firm Auction Technology Group.