27th Sep 2019 14:29
(Alliance News) - Cash shell Abal Group PLC on Friday said it has agreed a deal to acquire Supply@ME Srl and will launch a share placing to cover the costs of the reverse takeover.
Supply, which is headquartered in Milan, Italy, develops a digital system which allows users to track their companies stock inventory and is aiming to build a presence in London and roll-out its services to other European cities.
The deal will see Abal take a 100% ownership in Supply, in exchange for new ordinary shares priced at 0.68 pence each, the stock's volume weighted average price over the five business days before its AIM suspension in early August.
The transaction is still conditional on receiving regulatory approval and the Abal placing being agreed by shareholders.
Alessandro Zamboni, the current chief executive of Supply, will become Abal's chief executive once the deal is completed, the company said.
In August, Abal's shares were suspending from trading after it failed to undertake a takeover within the required time frame.
Under AIM rules, cash shells have six months to complete an acquisition which constitutes a reverse takeover or raise GBP6.0 million to become an investment company. Failure to do so results in shares being suspended.
Abal, then known as Imaginitik PLC, became a cash shell on February 5 after completing the sale of innovation management software Planbox for USD2.5 million.
Trading of its shares will not resume until the reverse takeover has completed.
By Eric Cunha; [email protected]
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