French heart prosthesis company Carmat (ALCAR.PA) has filed for insolvency and requested to be placed in receivership after failing to secure emergency funding, it said on Monday.
Trading in Carmat shares have been suspended at the company's request, it said, pending a decision by the the Versailles Economic Affairs Court.
Carmat, which had warned earlier this month that it could run out of cash by end-June without fresh financing, said it had not managed to raise the 3.5 million euros ($4.1 million) it needed and had submitted the filing to the court.
Broker Portzamparc said in a note that the two most plausible outcomes for the group are a takeover by an industrial player in the sector or backing from a strong financial partner willing to support Carmat to profitability.
"Given the strategic nature of the technology, intervention by the French state cannot be ruled out, but this seems unlikely in the light of the company's liabilities," the broker added.
The group said earlier in June it would require 35 million euros over the next 12 months under its current business plan, including 20 million euros by the end of 2025.
A court hearing is expected in the coming days, Carmat added.
($1 = 0.8522 euros)
