LONDON (Alliance News) - The shares of MySQUAR Ltd and Flowgroup PLC were cancelled from trading on AIM on Monday as both companies failed to replace their nominated advisors by a deadline.
The shares of entertainment and payments platform MySQUAR were cancelled after having been suspended since November, as the company was unable to appoint a new nominated advisor replacing SP Angel Corporate Finance LLP.
SP Angel Corporate Finance resigned as nominated advisor and joint broker of the company when MySQUAR revealed that it was urgently seeking funding after GBP900,000 worth of bond issue proceeds were paid out without authorisation.
After an investigation, the company's directors discovered that a GBP200,000 loan was provided to MySQUAR back in February by a company that may have been a substantial shareholder. The loan was then repaid in March using bond proceeds.
MySQUAR said that, in the view of its directors, the loan may have constituted a related party transaction under AIM rules and that the firm should have issued a notification regarding the loan.
Moreover, MySQUAR would have been obliged to consult with its nominated advisor on the loan.
Additionally, other payments have been discovered that should have received approval from the board.
Meanwhile, Flowgroup had its shares cancelled from trading as it failed to appoint a replacement for Cenkos Securities PLC, which resigned at the beginning of November.
Back then, Flowgroup appointed administrators and said that it was "unlikely to appoint another nominated adviser and therefore expects that cancellation will occur".
Flowgroup had become a cash shell back in May, when it sold its Flow Energy Ltd operating subsidiary, a residential gas and electricity supplier.
