Lumos Diagnostics (ASX:LDX) has announced its intention to close its facility in the US state of Florida.
The company, which specialises in point-of-care diagnostic test technology, said the decision reflects recent events and current market conditions. As a result, it said, it is taking steps to further reduce its future commitments to expenditure and investment.
The company said it expects to complete the closure process in late September or early October and that the proceeds from the return and sale of assets should cover the majority of costs associated with the closure process.
“This means the closure is expected to be close to cost neutral,” it said, adding, “However, it will reduce the going cash burn for the Company through the elimination of the ongoing leasing and operating costs associated with the Sarasota site.”
“In the current market, Lumos clearly has to be very mindful of its planned cash expenditure and capital investment commitments,” said Doug Ward, CEO of Lumos Diagnostics. “In conjunction with the Board, we are looking at all aspects of Lumos’ operations to ensure that our investment and expenditure is closely aligned with achieving commercial outcomes. Even as we build out our pipeline with new Commercial Services customers, I am confident that our Carlsbad facility has sufficient capabilities and capacity to meet our near-term needs for our growing business.”