26th Mar 2014 13:39
LONDON (Alliance News) - Paragon Resources PLC Wednesday said its shares have been temporarily suspended from trading on AIM, while it is in active negotiations and is undertaking due diligence on certain proposals, which if successful, would constitute a reverse takeover.
In a trading statement last week, the AIM-listed agriculture investing company said that it had raised GBP45,000 via a draw down on its Equity Financing Facility with Darwin Strategic Ltd, but said that if it doesn't make an acquisition soon, its shares could be cancelled.
At the time, it said that if it has has not made an acquisition by March 25 to implement its investing policy, its shares would be suspended from trading under AIM rules on March 26.
Paragon Resources said Wednesday that it has not yet made any acquisitions and its shares have now been temporarily suspended. Paragon said if its investment policy has not been implemented within six months of suspension, its shares trading on AIM will be cancelled.
However, Paragon said that it is currently in active negotiation and is undertaking due diligence on certain proposals, which if successful and the transactions will be completed, then would constitute a reverse takeover under the AIM Rules.
It said that these negotiations are being pursued with the intention of completion prior to the September 26 deadline, when its shares would otherwise be cancelled from trading on AIM.
However, the company said that there can be no assurance that a transaction will be successfully completed, nor that it can be achieved in this timescale.
Shares in the company last traded at 0.200 pence, down 9.1%.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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