9th Sep 2019 17:10
(Alliance News) - Cellcast PLC on Monday said it will begin trading under the name Vintana PLC, effective on Tuesday.
Cellcast received shareholder permission for the name change on Friday.
In August, the company sold all its operations to its Chief Executive Craig Gardiner for GBP375,000, becoming a cash shell. Operating subsidiary Cellcast UK Ltd was sold to Com & Tel Media, which is owned by Gardiner.
As the transaction would result in Cellcast divesting of all of its trading business, activities or assets, the company would be deemed to become a cash shell under the AIM rules.
Cellcast said the proceeds of the disposal - which includes contingent rights to additional consideration - will be used to cover the costs of the transaction, expected to total GBP125,000, and to provide the company with working capital whilst it seeks a suitable reverse takeover candidate.
The move followed "difficult" trading conditions reported by Cellcast at the time of its annual results announcement in May. The company, which provided interactive television programming, reported a decrease of 6% in revenue to GBP10.9 million in 2018, due to lower income from the provision of management services and consultancy to overseas gaming and lottery operators.
"This has continued in 2019 year to date," said Chair Mike Neville in a statement in May. At the time, Cellcast directors were preparing to undertake a review of the prospects for the company going forward.
Shares in Cellcast closed 12% lower at 1.10 pence each in London on Monday.