8th Feb 2019 11:10
LONDON (Alliance News) - Blockchain Worldwide PLC has decided not to buy Chorum Group Ltd after failing to secure funding amid "political uncertainty" in the UK and is now looking to have its shares restored to trading.
In November 2018, Blockchain Worldwide proposed to buy blockchain software firm Chorum for an undisclosed sum. As the deal was structured as a reverse takeover, shares in Blockchain Worldwide were suspended from trading on announcement of the deal. The shares last traded at 4.75 pence.
On Friday, however, Blockchain Worldwide - known as Stapleton Capital PLC until January 2018 - announced it will now no longer proceed with the deal.
"Political uncertainty has seen greatly reduced levels of activity in London's equity markets and, despite many positive indications, the company was unable to successfully complete the fundraising for the acquisition," Blockchain Worldwide explained.
Chorum was said to be now seeking private funding.
Meanwhile, Blockchain Worldwide will apply to the UK Financial Conduct Authority in order to get its shares restored to trading on the London Stock Exchange.
"Chorum is a top class company but the current climate within London's small-cap equity markets is extremely challenging," Blockchain Worldwide Chief Executive Rodger Sargent said. "Costs on the aborted deal have been minimised and directors continue to draw no salary; Blockchain retains net cash balances of over GBP1 million."
"We are already actively sourcing a new deal for when the markets are more stable and receptive to the exciting, high growth opportunities we are seeking," Sargent added.
Related Shares:
BLOC.L