5th Sep 2013 10:33
LONDON (Alliance News) - RAM Active Media PLC's trading on AIM was suspended Thursday as a result of a conflict between shareholders aligned with former chairman Tim Baldwin and the current directors, casting doubt on the company's financial stability.
Trading will remain suspended until the company is able to clarify its financial position.
Last Tuesday 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. In a statement, 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 has raised concerns over whether these negotiations can be completed. It cautioned that its financial position is very tight and was unlikely to be resolved without this additional funding.
If it were unable to secure this additional funding the directors would have to reconsider its financial position, RAM Media said. A resolution, either in the form of the requisition being withdrawn or the board calling a general meeting, is expected no later than September 11.
RAM Media is a holding company that invests in media companies.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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