4th Jun 2018 10:22
LONDON (Alliance News) - Monreal PLC shares collapsed Monday after it said it is seeking shareholder approval for admission to trading on the NEX Exchange Growth Market and the cancellation of it shares from AIM.
Shares in Monreal were down 39% in trading on AIM on Monday at 0.07 pence each.
Monreal became a cash shell under AIM rules after selling Cogenpower Srl in December. As such, the company is required to make an acquisition within six months.
If it does not, it will be re-admitted to AIM as an investing company - which requires the raising of GBP6 million - or the company's shares will be suspended from trading on AIM. Its shares would then be cancelled six months later "should the reason for the suspension not have been rectified".
Currently, the timetable for Monreal's shares to be cancelled is December 5.
The company is working towards identifying suitable targets for takeover and is confident of concluding a "suitable acquisition" but is "operating under a relatively short timetable".
Monreal is "concerned" its shareholders could be left without the ability to trade their shares should the company not conclude a suitable acquisition before the deadline.
As a result, the company is seeking to transfer the trading of its shares through admission to trading on NEX as an "investment vehicle".
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