20th Oct 2014 11:46
LONDON (Alliance News) - Ultrasis PLC said Monday that it has postponed the cancellation of its trading on AIM, as it continues discussions with a substantial shareholder regarding a refinancing of the company.
Ultrasis has facilities in place with shareholder Paul Bell, and under the terms of the facilities it is able to draw down a maximum of GBP1 million in any rolling 12 month period, Ultrasis has already reached this limit.
The company said it was considering a number of options will Bell, and if it is able to agreed further funding from Bell over and above the current facility, any such funding would result in shares being issued at a discount to its current share price.
If there were to happen, Ultrasis said, ordinary shareholders would be able to participate on comparable terms in respect of any equity investment.
However, Ultrasis cautioned that a refinancing is "still far from certain" and any significant equity investment would require consent from the Panel on Takeovers and Mergers, and independent shareholders.
As a result of this uncertainty it has postponed the posting of a circular to shareholders to cancel the trading of its shares on AIM, which had been requested by Bell.
Bell is continuing to provide working capital for the company under the existing facilities, and Ultrasis said that it continues to require Bell's consent to draw down cash from these facilities.
The news sent shares in Ultrasis tumbling lower, down 18% at 0.148 pence Monday afternoon.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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