30th Sep 2015 17:07
LONDON (Alliance News) - Geong International Ltd had its shares suspended from trading on AIM on Wednesday.
The company late Wednesday said it faced an "unavoidable delay" in providing some banking information, meaning its auditors were unable to sign off the accounts on time before the end of Wednesday, the last day the company had to post its interim results before being suspended.
"The board and the management will follow up with the banks as soon as the Chinese national holidays are over on October 8, 2015 and will provide the needed information to the auditors as soon as it is ready," it said.
As a result, its nominated adviser FinnCap has resigned, and the company was therefore suspended pursuant to AIM Rule One, which refers to the company ensuring it has a nominated adviser.
The suspension follows on from news in August that Geong had entered talks with Hanafin Ltd over a possible takeover bid, but those talks were, at the time, at a "very preliminary" stage. The discussions are focused on a bid which would be for around 5.0 pence per share in cash, the same price at which Geong's convertible unsecured loan stock is convertible at.
Hanafin currently has GBP1.0 million in convertible unsecured loan stock in Geong which is due to be redeemed at the end of September and, if redeemed, would give the company a 34.6% stake in Geong.
"The company is unable to conclude the discussion with Hanafin as previously expected on the 30 September 2015 for the extension of redemption date. We will continue our discussion with Hanafin and will make an announcement in due course," said Geong.
The Board apologize for the trouble caused and will do our very best to deal with the situation in the best interest of our shareholders," it added.
By Joshua Warner; [email protected]; @JoshAlliance
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