24th Apr 2007 10:10
Forbidden Technologies PLC24 April 2007 24 April 2007 Forbidden Technologies plc("the Company" or "Forbidden") Notice of EGM Forbidden announces that on 27 March 2007 the Directors of the Company becameaware that the unaudited balance sheet in its unaudited management accountsshowed that the Company's net assets were £294,296 whereas the amount of itspaid up share capital was £609,300. Pursuant to section 142 of the CompaniesAct 1985 ("the Act"), when the net assets of a public company are half or lessthan half of its called-up share capital, the directors of such company areunder a duty to convene an extraordinary general meeting ("EGM") to considerwhether any, and if so what, steps should be taken to deal with the situation. Accordingly, in accordance with section 142 of the Act, the Company is todaywriting to its shareholders with a notice convening an EGM to consider whatsteps should be taken to deal with the situation. The Company is also proposingto take its shareholders permission at that meeting to increase its borrowinglimit from its current level to £2,000,000. Although the Company requires further cash, the Directors are considering anumber of potential sources of funds and are confident that they will be able toput the resources in place that will continue to support the Company'soperations. The proposed increase in the borrowing limit would facilitate oneof these options. The Directors believe that in the seven years of Forbidden's existence they havefollowed a policy of prudent financial management. Specifically, the Companyhas no debt and has not taken any of the value of its intellectual property tothe balance sheet. The Directors believe that the Company has an exceptionalproduct which is timed perfectly for the market. For further information: Forbidden Technologies plc 020 8879 7245Stephen Streater, Chief ExecutiveGreg Hirst, Business Development Director Bell Lawrie 0141 221 7733Ken Fleming College Hill 020 7457 2020Corinna Dorward/Adrian Duffield This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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