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Vicorp Group PLC (VICP)

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Wednesday 11 March, 2009

Vicorp Group PLC

Update on Working Capital

RNS Number : 7091O
Vicorp Group PLC
11 March 2009
 




11 March 2009


VICORP GROUP PLC

('Vicorp' or the 'Company')



UPDATE ON WORKING CAPITAL, CANCELLATION OF THE COMPANY'S AIM LISTING, MOVE TO PLUS MARKET AND RESIGNATION OF NOMINATED ADVISER 



Working Capital Update


Further to the announcement on 17 February 2009 ('previous announcement'), the Company indicated that it was seeking to complete a placing of up to £500,000 and raise £600,000 loan from Royal Bank of Scotland ('RBS') backed by the new Enterprise Finance Guarantee. 


The directors can now confirm that the loan application was not successful with RBS, however, the directors can also confirm that the equity fundraising is underway and that it has now increased the target to £600,000. The directors expect to issue an update on the placing in due course. Based on discussions with potential investors, the directors expect that a part of the investment will be in the form of a convertible loan note. The placing is subject to the resolutions that are proposed at the General Meeting scheduled to take place on 13th March 2009 being passed. 

 

As part of the Company's working capital review, the board have now identified costs savings of approximatley £900,000 on an annualised basis. This target has been revised from the previous announcement in which the Company indicated costs savings of £500,000.  These costs savings are expected to be acheived within the 6 month timeframe as indicated in the previous announcement.

 

The board have reviewed the working capital requirements of the Company and are satisfied that if the above arrangements are completed then Company may remain financially sound for the foreseeable future.


AIM listing Cancellation and intention to apply for admission to the PLUS Market


As part of a wider review of costs, the Board has concluded that the costs and regulatory requirements associated with maintaining admission to AIM outweigh the benefits gained from Admission. The costs include fees paid to the Company's nominated advisor and registrar, annual fees paid to London Stock Exchange, costs relating to public announcements, certain fees and expenses of Directors and fees and expenses of accountants and lawyers engaged to provide services relating to the Company's Ordinary Shares being traded on AIM.


In addition to the overheads involved in maintaining the Company's admission to AIM:


 
-          the Company has seen limited trading volume in the Company's shares;
 
-          the Directors consider that given the Company's size and share price it would be better suited to being listed on PLUS markets; and
 
-          the Directors consider that the best strategy for the Company is to focus on developing the business and minimising overheads with a view to generating profit in the shortest possible time.

After careful consideration, the Board has, therefore, concluded that it is in the best interests of the Company and Shareholders if the Company's admission to trading on AIM is cancelled.



General Meeting ('GM')


Under the AIM Rules for Companies, it is a requirement that any Cancellation of Admission must be approved by not less than 75 per cent. of votes cast by Shareholders in general meeting. Accordingly a notice of GM will be posted to Shareholders on 12 March 2009 which contains a special resolution to approve the application to London Stock Exchange for cancellation of admission of the Ordinary Shares on AIM. The GM will be held at the office of Vicorp Group, Wexham Springs, Framewood Road, Wexham, Slough SL3 6PJ commencing at 4.00 p.m. on 16 April 2009. If approved, it is expected that Cancellation of Admission will take effect from 7.00 a.m. on 24 April 2009.


Directors' recommendation


The Directors consider that the proposals are in the best interests of the Company and the Shareholders as a whole and are most likely to promote the success of the Company for the benefit of the Shareholders as a whole.


The Directors unanimously recommend that all shareholders vote in favour of the upcoming resolution 



Timetable


The expected timetable of principal events is shown below:


Posting of Circular regarding delisting from AIM               12 March 2009   


Latest time and date for receipt of GM Form of Proxy       3.00 p.m. on 14 April 2009  


General Meeting                                                                 16 April 2009


Cancellation of Admission effective if resolution passed   7.00 am on  24 April 2009



The Board expect to be able to update the market on the timetable for seeking admission to the PLUS market in due course.



Resignation of the Nominated Adviser


Given the Company's impending delisting from AIM and move to the PLUS market, Zimmerman Adams International ('ZAI'), the Company's nominated adviser, has tendered its resignation, to take effect as at the date of delisting being 24 April 2009.


In the event that the resolution to pass the delisting from AIM is not successful, then ZAI will resign with immediate effect following the General Meeting on 16 April 2009. The Company's shares will be suspended from trading on AIM in accordance with Rule 1 of the AIM Rules. 

 

If within one month following such suspension Vicorp has failed to appoint a replacement Nominated Adviser, the admission of the Company's shares to trading on AIM will be cancelled.




For further information, please contact:


Brendan Treacy, Chief Executive, Vicorp Group PLC    

Tel: 01753 660 500  

www.vicorp.com


Monisha Varadan, Rivington Street Corporate Finance   

Tel:  0207 562 3389


Ray Zimmerman/Jonathan Evans, Zimmerman Adams International Limited 

Tel: 0207 060 1760

www.zimmint.com


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