(Alliance News) - Adams PLC said on Thursday that it noted the announcement made by WANdisco PLC earlier that day regarding its requests to suspend its shares.
Adams, the investment company based in the Isle of Man, has an interest in 85,000 shares in WANdisco, which it acquired in December for a consideration of approximately GBP592,000.
Earlier Thursday, WANdisco requested its shares be suspended from trading on AIM in London while it conducts an investigation into possible "sophisticated" fraudulent activity.
Coming just days after it announced it was exploring a potential US listing, analysts called the news a "total embarrassment" that could result in "financial disaster" for the firm.
WANdisco, a data activation company, explained that, following investigations by its chief financial officer and chief executive officer, it discovered "potentially fraudulent irregularities" in received purchase orders, alongside related revenue and bookings.
WANdisco said the irregularities will "significantly impact" its cash position and lead to "material uncertainty" regarding its overall financial position.
The firm now expects that 2022 revenue could fall by 63% and be as low as USD9 million, and not USD24 million as previously expected. In addition, the company said it has "no confidence" in its announced financial 2022 bookings expectations.
WANdisco said it would make further announcements in due course.
Adams shares were trading flat at 5.00 pence in London on Thursday afternoon, while WANdisco shares were flat at 1,324.41 pence.
By Sabrina Penty; Alliance News reporter
Comments and questions to newsroom@alliancenews.com
Copyright 2023 Alliance News Ltd. All Rights Reserved.
Adams (ADA)