Shares in a London-based tissue engineering firm have dropped by a third in the first hour of trading this morning after a 15 million funding deal fell through.

BSF Enterprise PLC’s subsidiaries include lab-grown leather, corneal repair and cell-culture media supplements – the latter a spinout from Newcastle University. It also has operations in Hong Kong.

The proposed £15m equity raise, backed by Blackstone Mercantile Group, was to accelerate commercialisation plans.