25th Sep 2015 09:15
LONDON (Alliance News) - Ultima Networks PLC on Friday saw its shares plunge in morning trade as it said it will sell all of its operating subsidiaries, raise money via a placing, and convert itself into an investing company.
Ultima said it will sell its operating activities, which includes an IT services business and a green technology division that develops and supplies electric powered bicycles and specialist electrical goods to a newly-incorporated company which will be owned by its existing shareholders.
The company also said it has conditionally raised GBP750,000 in a share placing, issuing 107.1 million shares at 0.7 pence per share. Shares in the company were down 51% to 0.122 pence on Friday, the worst performer in the AIM All-Share.
Following the disposals, placing and share reorganisation, Ultima said it will convert into an investing company and will focus on making investments in the natural resources sector, with an initial focus on Africa and North America and will change its name to Onzima Ventures PLC.
As part of the revamp, the company also said Humayun Mughal, its chairman and chief executive, and Anthony Klein, its finance director, will step down. Gavin Burnell has been proposed as its new chief executive officer, though the group has not named any successor to Klein.
Burnell is a director of corporate finance at Sanlam Securities UK Ltd, the broker, and holds directorships with a number of UK companies, including enterprise software firm Globo PLC and oil and gas company Magnolia Petroleum PLC.
By Sam Unsted; [email protected]; @SamUAtAlliance
Copyright 2015 Alliance News Limited. All Rights Reserved.