The Aim-quoted business said that after receiving interest in it, it has decided to conduct a formal review of the various strategic options available, to maximise value for shareholders.
“These options include, but are not limited to, the potential sale of the company or the sale of one or more of the company’s assets,” said the business.
It develops and manufactures collagen-based products and biomaterials used by the medical device industry, saying uses of its collagen products include cartilage repair and skin grafts.
The board has named England & Company and Goodbody Stockbrokers joint financial advisers, and Collagen Solutions is now considered to be in an “offer period”.
It comes as the business – which is led by chief executive Jamal Rushdy – prepares to provide a trading update with preliminary year-end revenue and cash balances next week.
Last month, it warned over widening full-year losses due to supply delays and the hesitancy of customers to commit to new orders as a result of the coronavirus outbreak.
“The company expects the loss for the year will be materially greater than anticipated due to increased costs from a development and manufacturing contract which has taken longer than originally anticipated,” it said at the time.
In December the group posted pre-tax losses of £1.2 million for the first half, and improving group revenues of £2.2m.
The business, which operates from Nova Business Park, was spun out from sausage skin maker Devro in 2008 in order to exploit biomedical applications for medical-grade collagen.
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