March 26, 2009 / 8:49 AM / 10 years ago

UPDATE 1-Finland's Inion says unable to get funding

* In talks for strategic deals, asset sale

* Gets indicative commitments from investors * Still needs money for working-capital requirements

* Shares fall 20 pct (Adds details)

March 26 (Reuters) - Inion IINq.L, a Finland-based developer of biodegradable medical implants, said on Thursday it was not able to secure sufficient funding to continue its operations and that it was in talks to sell some assets.

However, the AIM-listed company said it obtained indicative commitments from a number of investors.

Inion said it still required additional capital to fund its operations in the short term despite cutting overhead expenditure and headcounts earlier.

“With an equity fundraising now highly unlikely, the company has initiated discussions with a number of parties in relation to other strategic transactions or divestment of certain assets to raise additional funding,” Inion said in a statement.

There is no certainty that these talks would result in an injection of funds into the company, it said.

On March 19, the company had announced the suspension of 33 employees in Finland, following which Inion would have 29 active employees.

The cost savings to the company from this move were expected to be about 200,000 euros ($271,400) per month.

Inion shares were down 0.5 pence at 2 pence at 0843 GMT. ($1=.7369 Euro) (Reporting by Tresa Sherin Morera in Bangalore; Editing by Gopakumar Warrier)

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