Further re LOI and Bank Facilities

600 Group PLC

04 December 2023

 

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF EU REGULATION 596/2014, AS AMENDED (AS IT FORMS PART OF UK DOMESTIC LAW BY VIRTUE OF THE EUROPEAN UNION (WITHDRAWAL) ACT 2018.

4 December 2023

The 600 Group PLC

("600 Group", the "Group" or the "Company" and together with its subsidiaries the "Group")

Further re Potential Disposal , Debt Facilities and Annual Report

Further to the Company's announcement of 6 October 2023, the 600 Group provides an update in relation to the non-binding letter of intent then entered into (the "LOI") in respect of the potential disposal by the Group of a majority interest in the business and assets of the Group's wholly owned TYKMA Electrox and Control Micro Systems industrial laser businesses (the "Laser Business") to a U.S. based operationally-oriented mid-market private equity firm (the "Counterparty").

Discussions between the Group and the Counterparty continue in relation to a potential disposal by the Company of the Laser Businesses, however the parties have now mutually agreed to terminate, without penalty and with immediate effect, the binding period of exclusivity provided by the Group to the Counterparty in relation to the proposed disposal which would otherwise have expired on 27 December 2023.

Whilst the parties remain in discussions in relation to a potential disposal, the Company cautions that there cannot be any certainty that a potential disposal will be concluded and nor can there be any certainty as to the terms on which any transaction may be possible.

As announced by the Company on 31 October 2023, trading conditions have remained difficult since the time of the Company's Trading Update issued on 1 September 2023 and the Group has continued to be loss making at an operating level.

As previously announced, the Group's existing US$5.5 million fully drawn debt facilities (the "Facility") matured on 30 November 2023. Whilst the Company remains in discussions with its lender in respect of an extension and amendment to the Facility, no extension has yet been confirmed and the Group continues to consider various financial alternatives to both the LOI and the Facility.

Further to the announcement made on 31 October 2023, the audit process in respect of the Company's 2023 Annual Report for the year ended 31 March 2023 (the "2023 Annual Report") remains ongoing. Whilst the majority of audit field work has now been completed, there remain a number of process and audit matters to be concluded, including in relation to the Group's future funding position. As a result, the 2023 Annual Report is now not expected to be published prior to the end of 2023. The Board now anticipates that the 2023 Annual Report will be published prior to the end of February 2024.

As a result, trading in the Company's ordinary shares on AIM will continue to be suspended pending publication of the 2023 Annual Report. Suspension from trading will be lifted with the publication of the 2023 Annual Report in due course. Notwithstanding the temporary suspension of trading in the Company's ordinary shares, the Company will continue to make announcements as and when there are any developments that require announcement in accordance with its obligations under the AIM Rules.

Further announcements will be made, as appropriate in due course.

Enquiries:

The 600 Group PLC Paul Dupee, Executive Chairman	Tel: [phone]
Cavendish Capital Markets Ltd (Nominated Adviser and Broker) Ben Jeynes / Dan Hodkinson (Corporate Finance) Henry Nicol (Sales)	Tel: [phone]

 

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