6th Mar 2020 13:06
(Alliance News) - Health and housing property company Ashley House PLC on Friday said it has requested for its shares to be suspended due to "material uncertainty" of its financial position.
The company on Thursday last week said it was still in pursuit of the cash required "both to meet its ongoing working capital commitments and to support its affordable housing strategy".
Ashley House added on Friday: "Although progress is being made, if ultimately unsuccessful or not achieved in timely fashion and in the absence of other sources of funding, the company will not be able to continue to trade as it would be unlikely to be able to honour its obligations to creditors.
Accordingly, due to the material uncertainty of the company's current financial condition, Ashley House has requested that trading in the company's shares on AIM and NEX be suspended."
The suspensions were effective from 0730 GMT on Friday. Shares in the company closed at 1.10 pence each on Thursday.
Ashley House explained that F1 Modular Ltd, its 76%-owned subsidiary, filed a notice of intention to appoint an administrator.
F1 Modular had received notice from its creditors that they "were minded to take action" for non-payment.
Ashley House said: "The company and F1M will work together over the coming days to seek, in the absence of a funding solution, a sale of this subsidiary. F1M has instructed a firm of accountants to pursue an accelerated sale process to find a buyer for the business. Discussions with two parties are already underway and will be included in this process."
Also last week Thursday, Ashley House said the need for funding would not be "quite so urgent" if it received payments totalling GBP1 million from two of its own debtors.
Ashley House added on Friday: "The company continues to urgently pursue legal remedies to recover long overdue receivables in excess of GBP1 million. The board will continue to update the market as to progress on the above."
By Eric Cunha; [email protected]
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