(Alliance News) - Itsarm PLC shares surged on Friday, after shareholders voted against the company placing itself into voluntary liquidation.
Shares in Itsarm were temporarily suspended at 0700 BST on Friday, they were then restored at about 1000 BST.
Shares in the company surged to 0.59 pence on Friday morning, after closing at 0.22p on Thursday. In the last 12 months, the stock is down 99%.
Itsarm has been a cash shell since March. At the time, it sold its only operating subsidiary In The Style Fashion Ltd for GBP1.2 million. In the Style was a Manchester-based digital fashion brand and was sold to Baaj Capital, a UK-based private family office.
At the end of April, Itsarm announced plans to place itself in liquidation and cancel its shares from trading on London's AIM.
At the time, it said it had no income but continues to incur operating expenses which include the costs of having to remain an AIM-quoted company. Itsarm described these costs as "significant."
On April 25, the company had cash of GBP516,000, with current contractual liabilities of GBP231,000. It also has ongoing costs including directors' fees, insurance costs, AIM listing fees, registrar fees, professional and other advisers' fees and website hosting costs.
Based on this, Itsarm said that the likelihood of it being able to continue for a period longer than three months before becoming insolvent is "low."
However, on Friday, shareholders voted against the resolution and the company will therefore remain quoted on AIM as a cash shell.
Itsarm said that 62% of shareholders voted that the company should be wound up voluntarily, but 38% voted against the resolution. Meanwhile, 64% of shareholders voted for the cancellation of its shares trading on AIM, with 36% voting against.
By Sophie Rose, Alliance News reporter
Comments and questions to newsroom@alliancenews.com
Copyright 2023 Alliance News Ltd. All Rights Reserved.