Nanosynth Group said on Tuesday it has proposed to enter into creditors' voluntary liquidation, after an unsuccessful attempt to procure necessary funding.

The company had flagged the lack of cash resources last month, saying it was evaluating potential funding options.

Creditors' voluntary liquidation - the most common type of insolvency - is a liquidation procedure that enables a company to be wound up by resolution of its members instead of a court order.

The AIM-listed firm, which specializes in the synthesis and application of nanoparticles to create products, had a market capitalization of 1.76 million pounds ($2.22 million), according to Refinitiv data.

(Reporting by Eva Mathews in Bengaluru; Editing by Shailesh Kuber)