Verditek reports progress with proposed disposal

23rd Feb 2024 12:25

(Sharecast News) - Verditek updated the market on its proposed disposal on Friday, announcing positive progress in negotiations with bondholders regarding the sale of certain assets.

The AIM-traded company said it had implemented additional measures to reduce cash burn, extending its cash runway by one week until the week of 4 March.

Despite directors' confidence in successful negotiations with bondholders, the board said uncertainty remained about shareholder approval of the proposed disposal at the general meeting convened for 28 February.

In the event the proposed transaction did not complete, alternative routes including liquidation could be considered by the directors.

However, liquidation could lead to the resignation of the nominated adviser and suspension of the company's shares from trading on AIM, with the possibility of admission cancellation if a replacement adviser was not appointed within one month.

On completion of the proposed disposal, Verditek said it would become a cash shell under the AIM rules, necessitating an acquisition within six months to avoid suspension of trading.

Failure to resume trading within six months could result in admission cancellation under the AIM rules.

At 1034 GMT, shares in Verditek were down 21.05% at 0.08p.

Reporting by Josh White for Sharecast.com.