5th Aug 2016 11:27
LONDON (Alliance News) - Power supplier Rame Energy PLC on Friday said it has appointed insolvency specialist Leonard Curtis Recovery Ltd as administrator of the company after it failed to raise GBP2.8 million via a non-brokered fundraising.
Rame announced its intention to raise the funds back in April, but said that due to difficult market conditions and the outcome of the EU referendum, it was unable to complete the fundraising.
As a result, Rame came to the conclusion that it can no longer continue to trade on a solvent basis and has therefore appointed Andrew Beckingham and Colin Prescott of Leonard Curtis to resolve the liquidity issues and, if possible, maintain Rame as a going concern.
Shares in Rame have been suspended from trading on AIM since July 1 as it was unable to publish its annual results within the timeframe under AIM rules.
Later on Friday, Pires Investments PLC, which holds a 3.2% stake in Rame, released a statement noting Rame's announcement.
Pires confirmed that it has sufficient capital for its current needs after securing a GBP200,000 convertible loan facility with its major shareholder in July, and said it will continue to monitor the situation at Rame.
Shares in Pires were trading down 19% at 2.94 pence on Friday afternoon.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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