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Cellcast plc (CLTV)

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Thursday 07 December, 2017

Cellcast plc

Update on the Lexinta fund and trading

RNS Number : 7058Y
Cellcast plc
07 December 2017
 

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014.

 

07 December 2017

Cellcast plc

("Cellcast" or the "Company")

 

Update on the Lexinta fund and trading

 

Lexinta fund update

 

On the 13th November 2017, the Company issued an announcement regarding its investment in the Lexinta fund, the carrying value of which is currently stated in the Company's accounts at £754,358.

 

Despite continued attempts by the Company, the manager of the Lexinta fund has refused to engage in meaningful discussions with the fund's investors regarding the investments within the fund.

 

The Company is aware that a number of investors in the Lexinta fund have complained to FINMA, the Swiss financial regulators, and a large group of investors have filed a criminal complaint against the fund manager with the Swiss Department of Public Prosecutions. The Company understands that these filings have now been confirmed as being received and are being acted upon.

 

The Company has engaged lawyers in London and Zurich to advise it in pursuing the appropriate claims against the Lexinta fund, Lexinta AG (the manager of the fund) and the individual fund manager, Bismark Badilla.  The Company is also seeking to work with other investors in the Lexinta fund to pursue a complementary course of action, so as to ensure that the Company does not duplicate effort and work, and thereby save money, and maximise any returns.  The Company is currently considering the appropriate level of provision against the carrying value of its investment in the Lexinta fund.

 

The Company will issue a further update in due course to confirm actions taken, the level of any provision and progress achieved.

 

Current trading update

 

On the 13th November 2017 the Company commented on  its profitable trading since its new supplier agreements came into force in August 2017.  This positive trading has continued into the final months of the year and the Company now expects to reverse its first 6 months of losses in the second half of the year and show a small profit for the year as a whole (before any provision for the carrying value of its investments in the Lexinta fund).

 

The Company is cautiously optimistic about several of the new key initiatives it has undertaken in order to save costs and to generate new income streams going forward.  Whilst the issues with the Lexinta fund are not welcomed the Company has sufficient cash available to it for its working capital requirements.

 

For further information:

 

Cellcast plc

 020 3376 9420

Mike Neville - Non-Executive Chairman

Craig Gardiner - Chief Executive Officer

Emmanuelle Guicharnaud - Finance Director

 

Allenby Capital Limited (Nominated Adviser and Broker)

 0203 328 5656

Nick Naylor / James Reeve

 

 

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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