(Alliance News) - Amala Foods PLC on Wednesday confirmed that its shares have been re-admitted to trading on the Standard segment of London's Main Market, but it is considering a reverse takeover so a suspension may loom.
The cash shell said in March that its shares would be restored after the publication of its financial results. It said the delays were "largely due to the busy season", as well as resourcing challenges faced by its auditors.
They have been now readmitted, following the publication of the results in March. It reported that its pretax loss for the financial year that ended March 31, 2022 was GBP1.1 million, narrowing from GBP2.5 million a year earlier. It reported no revenue.
On Wednesday, Amala said that it is now considering a reverse takeover, and it hopes to produce a shortlist in "the coming weeks".
It added that it is targeting concluding head of terms of a preferred target by late summer, which will once again trigger a suspension of its shares.
Amala said that it has retained enough capital to undertake a reverse takeover and has ensured steps to reduce working capital expenditure over this time. This includes the directors agreeing not to accrue or receive any remuneration until a takeover is in place.
Amala also said that it has added Celia Li to its board of directors. It said that she has "expertise and experience with overseas investments and investors."
"The directors are working hard to achieve these goals for the benefit for the shareholders and other stakeholders in the company," Amala said.
Shares in Amala Foods were down 2.7% to 0.22 pence each in London on Wednesday around midday.
By Sophie Rose, Alliance News reporter
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Amala Foods Plc (DISH)