last rise RNS12 Aug 2019 14:07
Statement re share price movement and Director declaration
The Board of Cellcast plc (AIM: CLTV) notes the increase in the Company's share price and provides the following update.
The Company announced in its annual results for the year ended 31 December 2018 that, as a result of the gradual decline in the Company's core business, the Board has been reviewing the prospects for the Company going forward. The Board is of the view, having explored a number of options, that the most appropriate course of action for the Company would be to dispose of the Company's operating business, Cellcast UK Ltd ("Cellcast UK"), to certain members of the executive management team (the "Proposed Purchasers") and seek an acquisition of a new business via a reverse takeover. The disposal of Cellcast UK would constitute a fundamental change of business under the AIM Rules for Companies and be subject to the approval of an ordinary resolution by shareholders at a general meeting of the Company.
Based on the discussions between the independent directors of the Company and Proposed Purchasers to date and in light of the current trading in the Company, the current proposals under consideration are for the disposal to be effected at a valuation that is below the market capitalisation of the Company as at the close of business last Friday.
It is important to note that no terms have been agreed at this stage and there can be no guarantee that the discussions will lead to a firm offer from the Proposed Purchasers. Further updates will be provided in due course.
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