Amphion takes bath on sale of Myconostica stake

24th May 2011 13:54

Penny stock Amphion Innovations, the developer of medical and technology businesses, saw its share price dive after its net asset value was shaved by a penny as a result of a disposal.The company has sold its stake partner company, Myconostica to Lab21, a privately owned medical diagnostics business based in Cambridge.Myconostica, based in Manchester, develops and supplies molecular diagnostic products to aid rapid and accurate diagnosis of life-threatening invasive fungal infections.Prior to the deal with Lab21, Amphion had a 16% shareholding in Myconostica that was valued at the end of 2011 at $2.3m. The Myconostica stake has now been replaced by a minority stake in Lab21, valued at just $0.2m.As a result of this, the net asset value per share of Amphion will be reduced by a penny per share.Richard Morgan, Amphion's chief executive officer said, "The lack of sufficient further capital to support Myconostica's continued progress as a standalone company required exiting at a relatively early stage in its growth which ended in a disappointing outcome."---jh