CLTV Cellcast Plc

TIDMCLTV

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 GBP754,358.

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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