News Column

Iafyds Racing Against Time To Secure Reverse Takeover

June 6, 2014

Samuel Agini

LONDON (Alliance News) - Iafyds PLC, formerly known as VPhase PLC, Friday warned that its quotation on the London Stock Exchange's AIM market will be lost if it doesn't identify and agree upon a reverse takeover, at least in principle, by the autumn.

In the meantime, Iafyds said it has secured additional funding through a GBP110,000 share placing with Henderson Global Investors, which raised its stake in the company as a result to 89.8% from 83.9%. The 3.67 billion shares were issued at 0.003 pence each. Iafyds shares were Friday quoted at 0.0400 pence, down 20%.

Iafyds said losses widened to GBP2.2 million in 2013, from GBP1.7 million a year earlier, but noted that the figures have "little relevance to the future as the business to which the accounts refer is discontinued and has not traded since the interim results."

Iafyds has until February 6 to complete a reverse takeover, but it said such a reverse takeover is likely to take about three months to complete after initial agreement.

It said its efforts to find an opportunity for a reverse takeover have coincided with the parade of initial public offerings coming to market.

"This has reduced the number of private companies looking for an AIM listing for their shares via a reverse takeover as this route is perceived to be less attractive when the conventional IPO market is strong," Chairman Clive Carver said in a statement.

But signs of a cooling IPO market amidst poor performance of recent listings in the aftermarket mean there could yet be opportunities for Iafyds, although Carver said it remains to be seen whether this will reduce the number of conventional IPOs in the second-half.

Iafyds was classed as an investing company after last year failing to secure the necessary funding to continue trading as an energy efficiency technology company. With its only trading subsidiary, VPhase Smart Energy Ltd, remaining in administration and awaiting liquidation, asset manager Henderson Global Investors Ltd, whose holding company is FTSE 250 listed Henderson Group PLC, agreed to invest additional funds in Iafyds for the pursuit of a new venture.

Henderson's GBP150,000 investment in February gave it an 83.9% stake in Iafyds. On June 4, Henderson followed this up with the further GBP110,000 for Iafyds to meet its running costs. The shares are expected to be admitted for trading on AIM on June 12.

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Source: Alliance News

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