Small Talk: Inventor of eye surgery laser faces battle for funds

CustomVis, the inventor of a new laser for eye surgery, which floated in 2003, has two months to persuade investors to save the company. Without fresh cash, it will have to stop trading in October.

The company has faced all the delays, teething problems, and forced redesigns that affect a new piece of hi-tech equipment, particular one where precision is of the essence. Yet it would be a shame, just as it is starting to attract buyers for its lasers, not to give it a little bit more time.

CustomVis's machine is designed to be more reliable and give better results than first-generation lasers but the company had sold just one until last month. With more than 500 procedures now carried out in trials, though, early data is promising and it has been able to secure new sales to clinics in Korea, Singapore and the Netherlands.

Potential investors will want to examine that data themselves before making a final commitment, but one of the conditions set by existing and new shareholders - namely, that CustomVis sells three more lasers - has been satisfied.

The question is what further concessions will have to be made. There could be pressure on Paul van Saarloos, the inventor turned chief executive, to step back into a "technical officer" role in favour of a new business-orientated boss. And then there is the question of price. The business remains very risky, and the need to re-employ manufacturing staff will delay profitability even if sales start to flood in, so it seems unlikely an equity refinancing will be done above the current share price.

3C float delay is crisis

Here's another company facing a cash crunch. Consolidated Communications Corp (3C) is listed on Ofex, and its most recent results showed it must pay £2.7m to creditors this year, despite having just £2.2m in assets at the end of 2004. In these circumstances, the difficulty it is having with a £3m-£4m fundraising and flotation on AIM is something of a crisis.

The company owns telecoms networks in fast-growing Hungary and Russia, including the KGB's old satellite phone system. Unfortunately, it is a complicated business, as you can imagine of anything assembled in the anarchic proto-capitalist era after the collapse of the Soviet Union. In the past year, 3C has struggled to standardise its accounts, racked up higher losses and seen the sudden departure of its last chief executive.

Officially, the fundraising is on hold pending potential investors' return from holiday. But it rather looks as if AIM's institutional investors are turning their face against a rescue of this risky group.

Cellcast tries its luck

In a multi-channel age, with Sky+ and the like able to screen out adverts, broadcasters must make more money in other ways, perhaps from interactive services and mobile content. Enter Cellcast, whose Get Lucky TV on Sky is one of several games and dating services on offer to television companies and mobile phone operators in several countries. It is raising £4.5m in a flotation on AIM next month.