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(Alliance News) - BigDish PLC said Wednesday it has commissioned a review into its corporate governance processes and procedures, as it has had to clarify an earlier statement about its funds.
Shares in the discount dining mobile app operator were down 12% in London in mid-morning trade at 1.36 pence each.
At the end of May, in a release about the company starting to roll out of its restaurant reservation app, BigDish said "the company is funded to execute its strategy".
The comment was in relation to BigDish's plans to expand its app throughout the UK, by initially targeting independent and smaller restaurant groups. The company was then hoping to sign up bigger restaurant and pub groups.
Speaking on Wednesday, however, BigDish said: "The company acknowledges that this statement may have been interpreted to suggest it had sufficient funds to fully execute (ie complete) its strategy."
In June, BigDish raised GBP2.1 million via a share placing then, at the time, saying it was now fully funded until 2021.
"The additional funds received by the company in June provided the company with funds to accelerate the implementation of its strategy. The board acknowledges that the notification on May 30 should have been clearer and, with the benefit of hindsight, would have been better to have omitted the phrase altogether," BigDish said Wednesday.
The company continued: "Furthermore, the company recognises the importance to adopt a high standard of corporate governance. It has therefore commissioned a review of its corporate governance processes and procedures."
BigDish will adopt an "appropriate and recognised" corporate governance code and make "detailed" disclosures on its website about how it conforms with such a code.
"The company believes it will benefit from having an Independent non-executive director as part of the board and is currently in discussions with its advisers regarding suitable candidates," BigDish added.
BigDish also said new Chief Executive Tom Sumner has started his job. He started on Monday last week.
He will oversee the company's shift in structure, to a more cost-effective telesales based business model.
BigDish's previous business model saw it employ nine territory managers for regions in the UK such as Birmingham, Reading and Brighton. Now, the company's marketing drive will be fronted by a telesales team, with just two of the nine territory managers escaping the axe.
By Paul McGowan; paulmcgowan@alliancenews.com
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