AssetCo adjourns general meeting

AIM-quoted AssetCo has adjourned its general meeting until tomorrow after chief executive John Shannon said that he wanted to vote against resolutions that would enable the outsourced fire services provider to raise the additional cash that it requires.Shannon says that he is not bound by his irrevocable undertaking to vote in favour of issuing the shares for the £16m placing. Shannon owns 29.7% of the company. That would be enough to block the special resolutions at the general meeting. AssetCo is considering its options. The meeting will now be held at 10am on 22 March. Shannon has provided a personal guarantee for the company's overdraft. AssetCo argues that if the placing does not happen then its banks are likely to withdraw their support for the company. Trading in the shares had been suspended at 15.5p at the beginning of the day. The company said that it requires a £3m-£4m working capital facility on top of the £16m that would be available from the share placing if the general meeting votes to issue the shares. AssetCo has not been able to secure that facility from the bank as it would prefer. North Atlantic Value, Gartmore and Utilico Investments are willing to provide up to £3.33m each in return for shares at 10p each - the latest placing price. This support would be available for up to 12 months or as long as it is required but AssetCo does not have to ask for all of the potential funding. These investors may ask the company to redeem £15m of preference shares in AssetCo Abu Dhabi Ltd in exchange for shares at 10p each and the cancellation of warrants related to the preference share issue. Tudor Davies will replace Tim Wightman as chairman. This is a condition of the additional financial support. North Atlantic and Utilico can each appoint another director.