EIRX unit applies for liquidation

EIRX Therapeutics, the Cork-based drug discovery firm, has applied to put its Irish unit into liquidation.

As part of the liquidation process its chief executive Colin Telfer has resigned as a director. Directors John Pool, Nick Strong and Tom Cotter are working to put together a plan which they hope will secure the future of the company based around its other operating business, Auvation Limited.

Investment vehicle Billam said it has decided to write off its investment in the group. In total, the group’s investment portfolio has therefore been reduced by £433,000 (€546,000), when also taking into account the company’s writeoff of its unquoted investment in Tri-Mex Group.

Billam’s total direct and indirect interest in Eirx Therapeutics, including a loan, had a book value of about £283,000 (€357,000) as at December 31, 2007.

Billam also said it is in talks with Stephen Wicks, who holds a 28.2% stake in the company, to convert his loans to the company into equity.

The group, which invests in growing companies, said Mr Wicks has confirmed that he does not intend to demand repayment of the loans he has advanced to the company in the short term and, subject to agreement as to the conversion terms and the necessary approvals being given, is willing to convert part of his loan into new equity.

According to reports, if this proceeds, Wicks could end up with over 30% of Billam’s shares. The group said it is seeking a waiver from an obligation which might otherwise arise under the takeover code for him to make a general offer to all shareholders.