T42 Iot Track. Regulatory News (TRAC)

3 Jul 2008 17:12



Traction Technology Plc ('Traction' or the 'Company)

Result of EGM

Result of AGM

and

Creditors Voluntary Liquidation of Subsidiary

Result of EGM

At the Company's extraordinary general meeting held today, the resolution proposed that the application by the Company to the London Stock Exchange to cancel the admission of the Company's ordinary shares of 3p each ('shares') to trading on the AIM Market was approved by shareholders. Consequently, the Company's shares will cease to be admitted to trading on the AIM market on 10 July 2008.

Result of Annual General Meeting

At the Company's annual general meeting held today, all resolutions were approved by shareholders.

Creditors Voluntary Liquidation of Subsidiary

The Company stated in the trading statement on 23 May 2008 that at that time it had cash resources which, based on the then current cash burn rate and management forecasts, provided sufficient working capital for approximately two months of operations. Since the time of that announcement the Group has continued to burn cash in its operations. Accordingly the working capital position has deteriorated and the Company continues to have to monitor its creditor position closely.  

There remains very limited cash resources available to Traction Technology Plc at this point and consequently the Board of the Company has decided to cease to provide funding to its operating subsidiary, Traction Technology (UK) Limited with immediate effect. In light of the absence of further funding, the Board of Traction Technology (UK) Limited has today passed a resolution to commence the processes necessary to place Traction Technology (UK) Limited into creditors' voluntary liquidation.

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