(Alliance News) - Technology sector investor Blockchain Worldwide PLC on Tuesday reported a loss for financial 2019 due to the failed takeover attempt of Chorum Group Ltd, but said it is progressing with a new acquisition.
Blockchain's pretax loss for the 12 month period ended June 30 stood at GBP379,458 versus GBP82,251 loss for the 17 months to June 30, 2018. The company attributed the widened loss to its failed acquisition attempt at the beginning of the year.
Blockchain incorporated in February 2017.
Administrative expenses for the 12-month period totaled GBP385,792 versus GBP84,671 for the 17-month period. Blockchain did not record any revenue in the two periods.
"This is a tremendously exciting period for the company. The team has worked tirelessly post the disappointment of the aborted Chorum acquisition and has progressed the acquisition of Entertainment AI, an artificial intelligence and machine learning focused company operating in the media space," said Chair Jon Hale.
Last November, Blockchain attempted to acquire Chorum Group, but withdrew its offer in February due to "greatly reduced levels of activity" in London equity markets.
"The proposed acquisition of Entertainment AI has progressed significantly since May 2019. I hope that a further update can be given to shareholders in early September 2019," Hale continued.
"We have been pleased with the positive investor interest and I look forward to updating the market with further information about the company and its prospects in early September with a clear view to demonstrating significant shareholder value in the near-term," added Hale.
Shares in Blockchain Worldwide remain suspended in London but were last trading at 3.50 pence each. The company requested the suspension in May following its reverse takeover offer for Entertainment AI Inc.
The company expects its shares to be cancelled on AIM on September 30, should the Entertainment AI takeover be completed, and then reapply to have the larger share capital admitted to trading.
While talks in regards to the takeover at an advanced stage, Blockchain said there is no certainty that an agreement could be reached. The acquisition is subject to legal and financial due diligence as well as shareholder approval.
If the takeover is not completed, Blockchain will rescind its request to have its shares cancelled.
At August 30, Blockchain held cash reserves of "just over" GBP1 million.
