LONDON (Alliance News) - Ten Alps PLC shares were suspended from trading temporarily Monday as the company said it is in advanced talks about an acquisition that would constitute a reverse takeover under AIM rules and it is also mulling an equity fundraising and restructuring of its current long-term debt obligations.
The multimedia producer of TV and radio and integrated publishing and communications content had announced last December an underwriting agreement with some existing shareholders and directors to subscribe for new shares up to an aggregate value of about GBP1 million. It said Monday that will now be incorporated as part of the acquisition process and has agreed with the investors to extend the subscription period to August 31.
In the meantime, the investors will make the funds envisaged in the underwriting agreement available in June as an unsecured interest free loan that will then be satisfied by the subscription shares. The company is proposing to reorganise its share capital to allow the subscription to take place because its current market price is below the nominal value of the shares.
The company didn't provide any further details about the possible acquisition, and said it will make further announcements in due course.
Ten Alps shares closed at 0.500 pence Friday.
By Steve McGrath; stevemcgrath@alliancenews.com; @stevemcgrath1
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