23rd Oct 2014 12:46
LONDON (Alliance News) - Cientifica PLC, an AIM-quoted company focused on investing in businesses making use of advanced materials, graphene and emerging technologies, Thursday said it is in advanced talks with three businesses into which it could invest but that its shares will be suspended because it isn't likely to complete the transactions in time to comply with AIM rules.
At the end of September, Cientifica had identified seven prospective investee businesses, and has now completed its review and due diligence on them, selecting three for further talks.
However, Cientifica's shares will be suspended as of Friday at 0730 BST because it thinks it is unlikely that the contracts to conclude the investments will all be completed in time to beat a deadline to "substantially implement" its investing policy under AIM rules.
If Cientifica is unable to substantially implement its investing policy within six months of the suspension, its shares will be cancelled from trading on AIM.
Cientifica said it will continue to progress its potential investments with a view to substantially implementing its investing policy, which would result in the lifting of the suspension, but warned that there can be no guarantee that this will be achieved.
Chairman Tim Godwin said the company has made "substantial progress" since his appointment on September 4 in both reducing overheads and in progressing discussions with potential investee companies that are developing ready-to-market graphene based solutions for key consumer and commercial applications.
"We are hopeful that these investments can be completed within a short period of the suspension and believe that they, together with the existing G Heat investment, will represent a balanced portfolio of opportunities within the sector and form an excellent basis on which to build," Godwins said in a statement.
Cientifica shares were Thursday quoted down 8.9% at 1.02 pence.
By Samuel Agini; [email protected]; @samuelagini
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