News

June 25, 2008

Traction Fails To Get A Grip On Cash Burn, And Other Green Technology Companies Could Soon Face Similar Funding Issues

By Ivor Watt

Earlier this month hybrid engine developer Traction Technology quietly bade farewell to any ambitions it had of remaining a listed company. Traction’s been stymied by a combination of delays in its prime development project and a lack of cash. It may not be the last of the green technology players to fall by the wayside.

Stock market conditions are punishing at the moment and companies with no discernable revenues are in a terrible pickle when it comes to seeking fresh funding as the risk aversion of investors has risen significantly. It’s tough enough for Bradford & Bingley to raise money from investors, so what chance do the likes of Traction have?

Traction joined the market in December 2006, raising a modest £840,000 at the time with which it planned to pursue its strategy of developing a hybrid...