The window film producer has run into financial difficulties after trading at its businesses deteriorated, leaving it short of cash. Its shares were suspended earlier this month at the request of the company, after it said talks were progressing with several parties about providing short-term financing to alleviate constraints on its working capital, negotiations that could lead to the sale of the
It said Thursday that it reached a deal to sell all of its security division to the company's former chairman and current shareholder in return for reducing outstanding loans by
Last month, it had warned that although it had a "relatively health sales pipeline" in each of its divisions, the timing of contract milestones and the conversion of new contracts had led to a deterioration in its cash.
"Without sufficient additional short-term financing being obtained, or an acceptable offer being received, the board will likely seek to issue a proposal for a company voluntary arrangement within the next 6 business days," it said in its statement Friday.
A company voluntary arrangement is a procedure by which an insolvent company can pay off creditors over a fixed period, as long as those creditors approve the process. It is intended to assist in the rescue of a company in financial difficulties.
Under AIM rules, a listed company needs to have a nominated adviser. If
Its shares are currently suspended.
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