4th Apr 2025 11:03
(Alliance News) - Minoan Group PLC shares plunged on Friday after the firm warned it will miss the deadline to publish annual results due to insufficient funds, triggering a temporary suspension of its shares from May 1.
Shares in the London-based developer of hotel resort projects in Crete dropped 78% to 0.070 pence in London on Friday morning.
The company said it will be unable to finalise its audit for the year ended October 31, 2024, by the April 30 cut-off required under AIM rules.
As a result, Minoan shares will be suspended from trading starting May 1, although the suspension could come earlier unless a rescue deal materialises.
The company said it remains in negotiations with secured lender DAGG LLP after failing to secure a further extension of its GBP1.2 million loan, which has been in default since January and now accrues 12% interest on top of the standard 10%.
Minoan is considering a proposal from DAGG that would inject around GBP4.4 million in new equity funding into the company, convert the secured loan into equity, write off an additional GBP1.1 million owed to DAGG, and install new management.
However, the company cautioned there is "no guarantee" that ongoing negotiations with DAGG will result in a successful outcome. Any deal would be subject to regulatory and shareholder approvals and would be "significantly dilutive" to existing shareholders.
Minoan said if its board does not put the DAGG proposal to shareholders, DAGG members - who also own ordinary shares - have indicated they may requisition a general meeting for the shareholders to consider the DAGG proposal.
The company said it will make further announcements as required and will continue to evaluate options to protect shareholders and creditors.
By Eva Castanedo, Alliance News reporter
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