26th Feb 2019 14:36
LONDON (Alliance News) - Cradle Arc PLC on Tuesday said that its nominated adviser Strand Hanson Ltd resigned with immediate effect.
Pursuant to AIM rules, the firm needs to appoint a replacement within one month, otherwise its shares will be cancelled from trading on AIM.
Cradle Arc has no current intention to appoint a replacement nominated adviser, it said.
Strand Hanson resigned as Cradle Arc awaits a decision by the Botswana High Court on Thursday regarding the future of it subsidiary Leboam Holdings (Proprietary) Ltd.
Leboam which operates Cradle Arc's Mowana copper mine in Botswana is in need of funding to continue to operate.
Cradle Arc said that a report regarding Leboam's financial health and recommending that the company enters full judicial management was presented to its creditors on Monday.
"Should Leboam enter into full judicial management, the judicial manager would aim to restructure Leboam's balance sheet and seek to preserve value for Leboam's various stakeholders," Cradel Arc said.
Cradle Arc shares continue to be suspended from trading.