21st Oct 2013 16:54
LONDON (Alliance News) - RAM Active Media Limited Monday said it plans to appoint an administrator, after its shares were suspended on AIM as a result of a conflict between shareholders aligned with former Chairman Tim Baldwin and the current directors.
Last month a group of three shareholders, including two companies of which former Baldwin is a director, requisitioned a general meeting in an attempt to oust RAM Media's current leadership, Chairman David Binding and Chief Executive Richard Prosser. RAM said that this had increased uncertainty in the marketplace overs its ability to raise necessary funds.
The board is in the process of finalising negotiations with several projects that are contingent on securing new funding, and it said that the conflict with the former chairman had raised concerns over whether these negotiations could be completed. It cautioned that its financial position is very tight and was unlikely to be resolved without this additional funding.
RAM said the appointment of an administrator would have no immediate effect on the solvency of the company but would remove its main trading subsidiary while leaving the RAM Interactive activities and its 30% shareholding in the TrainFX joint venture with the company.
"Whilst the board of RAM Vision Ltd. continues to pursue options for it to continue as a going concern, if none becomes available in the next ten days the appointment of an administrator will become effective," the company said.
Shares in the company will continue to be suspended from trading on AIM until further notice.
By Anthony Tshibangu; [email protected];
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