By Joe Hoppe
Itsarm shares more than doubled Monday after it said it has agreed to various conditions, including replacing its only two directors, as an alternative to the compulsory liquidation proposed in early June.
Shares at 0756 GMT were up 0.35 pence, or 175% at 0.55 pence.
The cash shell–formerly a womenswear fashion brand–said that conditional on a winding-up petition being withdrawn or dismissed at a scheduled court hearing on Wednesday, it has entered binding agreements to replace its board.
David Craven and Jean-Paul Rohan will join the board as directors from the effect of the withdrawal, while current Nonexecutive Chairman James Sharp and Executive Director Richard Monaghan will step down.
The company said the proposal significantly reduces its liabilities and contingent liabilities to around 140,000 pounds ($179,970), which will be settled as soon as practicable.
Subject to the withdrawal, the proposed directors plan to acquire a company in a reverse takeover as soon as reasonably practicable, as it was assessing a number of opportunities.
Itsarm had said on June 5 that taking into account its contingent and prospective liabilities, there was a significant risk creditors would suffer detriment if it wasn’t placed immediately into a formal insolvency procedure, and it will petition the high court for the company to be wound up.
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