26th Jan 2015 08:52
LONDON (Alliance News) - Gowin New Energy Group Ltd's woes deepened on Monday as the company said its working capital remains constrained as it seeks new financing and said its nominated adviser has resigned its role.
Gowin last week said it expects to post a big writedown for 2014 owing to problems it has faced in collecting money owed to the company by its debtors.
Since October, Gowin has collected less than CNY1 million from its debtors. At the end of 2014, the unaudited balance of accounts receivable was CNY157 million, up from CNY91 million a year earlier.
The group said it is still in talks regarding securing new financing and expects to conclude and announce a deal imminently.
But the group also said on Monday that its nominated adviser, Cairn Financial Advisers LLP, has resigned from its position, effective from close of business on February 26. If Gowin has not appointed a nominated adviser by that time, its shares will be suspended from trading under AIM rules on February 27 . If it does not appoint a new adviser within a month of the suspension, trading in its shares would be cancelled.
Gowin shares were down 15% to 0.55 pence on Monday morning.
By Sam Unsted; [email protected]; @SamUAtAlliance
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