27th Nov 2019 12:06
(Alliance News) - Defenx PLC on Wednesday said it has obtained a EUR250,000 unsecured loan to fund its proposed London AIM market cancellation and will be appealing a substantial tax bill for its Swiss subsidiary.
The cyber-security software business is still working to finalise a circular with cancellation details, and this will be sent to shareholders likely in early December. The general meeting to vote on the proposal is to take place in December with cancellation effective in January.
At least 75% of Defenx's shareholders must approve the cancellation in order for it to proceed. BV Tech SpA, a 67% shareholder in Defenx, has decided to vote in favour of cancelling the AIM listing, Defenx said.
BV Tech is also providing the EUR250,000 loan to cover costs associated with the cancellation, which will accrue interest at 6.0% per annum and is payable with interest on March 1, 2020, or earlier.
The purpose of the loan is to meet payment obligations due under the cancellation process as well as to meet general working capital requirements. These requirements include settling "certain payment due to the Swiss tax authorities" for the six months ended June 2019.
The Swiss tax authorities opened a tax investigation for 2016 into Defenx's Swiss subsidiary which may necessitate future cash payment. On top of this, the Swiss authorities have now provided a 2017 assessment of approximately CHF110,000 or GBP85,500. Defenx plans to appeal the 2017 assessment as it believes the true amount due is much lower.
Shares in Defenx were flat at 0.95 pence in London late on Wednesday afternoon.
By Anna Farley; [email protected]
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