(Alliance News) - Cash shell Abal Group PLC said Tuesday shares have been suspended from trading on London's junior market after it failed to undertake a takeover within the required time frame.
Under AIM rules, cash shells have six months to complete an acquisition which constitutes a reverse takeover or raise GBP6 million to become an investment company. Failure to do so results in shares being suspended.
Abal, then known as Imaginitik PLC, became a cash shell on February 5 after completing the sale of innovation management software Planbox for USD2.5 million shortly before. As a result, Abal was required to complete an acquisition or raise the funds by August 5.
Although Abal continues to focus on reverse acquisition opportunities, its shares could be cancelled six months from now if it does not complete a takeover.
Abal added: "The board continues to focus on acquisition opportunities which could lead to a reverse takeover and is currently in an advanced negotiations with a fintech business which may or may not be successfully concluded. A further update will made in due course at the appropriate time."
Shares in Abal were last trading at 0.85 pence each.