(BFM Bourse) – The company requested the suspension of the trading of its shares on the Paris Stock Exchange before announcing that it had requested the opening of a safeguard procedure for its benefit.
In great financial difficulty, the green chemistry group indicated this Tuesday morning that it had asked the operator Euronext to suspend the listing of its shares on the Paris Stock Exchange from today, pending the publication of ‘a press release which will be issued soon.
This suspension of trading did not bode well for the future of the company based in Saint-Beauzire in Puy-de-Dôme, to the extent that it is experiencing significant financial difficulties. Metabolic Explorer has been facing fierce Chinese competition for several months in the market for lysine, an amino acid of animal origin which is also produced by the Metex Noovistago factory based in Amiens.
However, European players (including Metex) cannot face this competition on equal terms to the extent that lysine production depends on sugar prices. The raw material is purchased cheaper by the producers of this amino acid in China.
And these fears materialized this Tuesday evening. In a press release published at 5:00 p.m., Metabolic Explorer indicated that it was requesting the opening of a safeguard procedure with the commercial court concurrently with the request for the opening of judicial recovery procedures for its operational subsidiaries Metex Noovista and Metex Noovistago
For a company in difficulty, the safeguard procedure is likely to increase its chances of reaching a debt restructuring plan with its creditors. France implemented this procedure in 2006, which is an alternative to judicial recovery. The principle is (almost) the same since it involves avoiding the liquidation of a company with payment difficulties.
In the case of Metabolic Explorer, the opening of these procedures will allow the company “to evaluate all solutions allowing the sustainability of the group’s activity and maintaining jobs, if necessary through the search for investors within the framework of an open and competitive process.” These procedures “also facilitate the implementation of solutions found through the adoption of a plan to restructure liabilities or sell the company,” the company continues.
Cash pressures
In mid-February, Metabolic Explorer had fueled market fears about its financial situation, by revealing gross cash flow reduced to 18.9 million euros at the end of December 2023, compared to 47.9 million at the end of June 2023.
“Given the group’s cash flow tensions, already mentioned during the publication of the half-year results, efforts have been made to increase control over cash consumption”, explains Metabolic Explorer in order to ensure ” its cash flow requirements for the first half of 2024.
“The next few weeks will be decisive” Metabolic Explorer then indicated during this communication. The company reported that it was “facing the challenge of restoring its profitability and ensuring its financing in the short and also in the medium term” and added that it had engaged in “advanced discussions with several potential industrial partners as part of its search for financing”.
Metabolic Explorer will keep the market informed of the decisions that will be taken by the commercial court as soon as they are rendered. Trading of shares will resume on March 13, 2024 at the opening of the market, after having been suspended this Tuesday morning at a final price of 0.378 euros Monday evening.
Sabrina Sadgui – ©2024 BFM Bourse
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