nmcn PLC - Sutton-in-Ashfield, England-based construction engineering company - Says it has collapsed into administration after failing to finalise its annual report for 2020, approve audited financial statements and secure re-financing with investor Svella.
nmcn had been trying to finalise a GBP24 million recapitalisation of the business, backed by Svella. It had secured extensions of loan agreements until early November provided it could complete an equity raise by November 18. nmcn needed to publish a prospectus by November 1, which required its results for 2020, which had been due to published at the end of June, to be signed off.
The company explains: "The board, its advisers and Svella have worked tirelessly in the intervening period. However, as previously notified, completing the preparation of the group's accounts has revealed further underlying contractual issues with expected losses rising to GBP43 million.
"It has now become apparent that the company will be unable to approve the audited financial statements in a timely manner to allow the proposed transaction to complete within the required timeframe. This in turn has led to significant liquidity issues for the group and particularly the company, which unfortunately is now considered to no longer be able to continue trading as a going concern."
According to FTSE Russell, shares will be de-listed on Thursday.
Current stock price: suspended
Year-to-date change: down 55%
By Arvind Bhunjun; arvindbhunjun@alliancenews.com
Copyright 2021 Alliance News Limited. All Rights Reserved.