30th Nov 2018 13:07
LONDON (Alliance News) - Fishing Republic PLC on Friday said it is considering the disposal of some or all of its operating business as a result of a "difficult trading environment".
At the end of September, the company had said its pretax loss deepened to GBP2.5 million from GBP117,544 the year prior, after revenue fell to GBP3.4 million from GBP4.1 million the year before.
In mid-October, Fishing Republic shares were suspended from trading on AIM after some major shareholders were "no longer willing to provide further short-term financial assistance" to the company.
Then in mid-November, the AIM-listed angling equipment retailer said it was considering an equity raise to support working capital needs.
On Friday, Fishing Republic said the fundraising activity is ongoing, while the company's advisers are also in discussions with some existing shareholders to assess their support for providing short-term finance.
However, the company said there is no guarantee that it will be able to conclude the equity fundraise or raise sufficient funds for its immediate and future working capital requirements.
Therefore, a material uncertainty regarding Fishing Republic's financial position continues to exist, it said.
In addition, the company noted its current nominated adviser Northland Capital Partners Ltd proposes to merge with SP Angel Corporate Finance LLP. As a result, Northland has voluntarily agreed to relinquish its Nomad status and will be removed from the register of Nomads from February next year.
"Should there be a successful conclusion to the current fundraising activity, the board will seek to appoint a replacement Nomad by February 2019," Fishing Republic said in the statement.