ROL.L Regulatory News (ROL)

11 Apr 2005 15:00

Rotala plc11 April 2005 FOR IMMEDIATE RELEASE 11 April 2005 ROTALA PLC ("ROTALA" or the "Company") Statement regarding suspension ROTALA (AIM: ROL) announces that it has advanced funds to Flights CorporateTransfers Limited ("Flights Corporate) by way of a £175,000 term loan to beemployed by Flights Corporate for working capital purposes (the "Loan"). ROTALA also announces that the Company has entered into a period of exclusivitywith the shareholders of Flights Corporate and Flights Hallmark Limited ("Flights Hallmark") in connection with a possible strategic collaboration withboth Flights Hallmark and Flights Corporate which may or may not lead to areverse transaction pursuant to the AIM Rules. As a consequence of ROTALAentering into these arrangements and the Company's recent share priceappreciation, the Board has requested that the London Stock Exchange suspendstrading in the Company's shares until the nature of any future strategiccollaboration can be clarified. Flights Hallmark and Flights Corporate supply, inter alia, airport transfers andchauffeur services throughout the UK. Flights Hallmark and Flights Corporate areboth owned by private shareholders. The Loan agreement provides for ROTALA having advanced Flights Corporate a termloan of £175,000, repayable on 31 December 2005 at an interest rate of 8% plus anon-material arrangement fee. The agreement includes a 90 day grant ofexclusivity over Flights Hallmark and Flights Corporate for the purposes of theCompany conducting a due diligence exercise which may or may not lead to astrategic collaboration which would be determined as a reverse transactionpursuant to the AIM Rules. To date, no heads of agreement (binding or otherwise)has been entered into in relation to either Flights Hallmark or FlightsCorporate and no consideration terms have been discussed. - Ends - For further information please contact: John Gunn, Non-executive Chairman, Rotala plc T: 020 7236 6236Grant Harrison/Katherine Roe, Durlacher T: 020 7459 3600Nick Fox, M:Communications T: 020 7153 1540 This information is provided by RNS The company news service from the London Stock Exchange