2nd Sep 2019 11:33
(Alliance News) - Cash shell Tau Capital PLC said Monday it continued to seek a reverse takeover as AIM market share cancellation looms, but it is considering other exchanges should a deal not emerge in time.
For the six months ended June, net asset value per share sank to USD0.26 from USD3.29 the year prior. This was after total shareholders equity plummeted to USD129,571 from USD1.6 million the year before. Both were almost entirely due to a big capital return to shareholders.
"Your board has continued to review a number of potential opportunities for a reverse takeover," Tau Chair Gerwyn Williams said. "The board is very aware of the need to act quickly given that the admission to trading of the company's ordinary shares on AIM will be cancelled if such a transaction is not completed by the relevant date in October 2019."
In October 2018, Tau became a cash shell following the sale of its 40% stake in pharmaceutical products distributor Stopharm LLP for USD1.3 million. It subsequently returned USD1.2 million in cash to shareholders.
Tau has until October 23 to make a reverse takeover or else its shares will be cancelled from the AIM market of the London Stock Exchange.
"The board are considering a number of possibilities including applying for admission to a different exchange," Williams added. "In the meantime, a close watch is being kept on all expenses and, wherever possible, cost savings will continue to be made."
"As soon as there is material progress with an RTO, an appropriate announcement will be made," Williams continued.
Shares in Tau have been suspended since April amid ongoing delays in a reverse takeover being completed.