Iafyds PLC Statement re. Suspension (3296E)
February 09 2015 - 1:30AM
UK Regulatory
TIDMIAF
RNS Number : 3296E
Iafyds PLC
09 February 2015
Iafyds RNS
9 February 2015
Iafyds PLC
("Iafyds" or the "Company")
Update on the CVA, progress on finding a suitable investment
& notification of suspension.
Iafyds announces that, in accordance with Rule 15 of the AIM
Rules for Companies ("AIM Rules"), the Company's shares will today
be suspended from trading on AIM from 7.30 a.m. London time as a
result of the Company not having completed an acquisition which
constitutes a reverse takeover under the AIM Rules, or otherwise
implemented its investing policy within twelve months of becoming
an investing company. The Company continues to actively work
towards implementing its investing policy and will keep
shareholders informed of developments. Accordingly, the Board of
Iafyds is pleased to update the market with progress with the
Company Voluntary Arrangement ("CVA") and the search for a new
investment direction.
Completion of CVA
Further to the announcement of 17 September 2014, the Board is
pleased to confirm that, in accordance with Rule 1.29 of the
Insolvency Rules 1986, the CVA has been successfully completed as
per the original proposal agreed by creditors on 27 December 2013.
The Joint Supervisor, Patrick Alexander Lannagan of BDO LLP, has
filed a Certificate of Compliance at the High Court of Justice in
Manchester.
All claims from former creditors of V Phase plc have been
settled and the former trading subsidiary (which is no longer
controlled by Iafyds), V Phase Smart Energy Limited, has moved into
liquidation.
Progress in finding a new investment opportunity
Background
Since 7 February 2014, the date of the approval by Iafyds'
shareholders of the Company becoming an investment company under
the AIM Rules, the board and the principal investor Henderson have
sought a suitable business to acquire in accordance with the
Company's adopted investment policy.
Adopted Investing Policy summary
"The Company's adopted Investing Policy is to invest in
businesses that typically have attributed to them some or all of
the following criteria and characteristics:
-- Strong management;
-- An established entity or product in growth mode;
-- A differentiated product or offering;
-- A significant potential market opportunity; and
-- The ability to generate strong cashflows in the future.
The Company will initially focus on projects located in the
United Kingdom but will also consider investments in other
geographical regions in the future."
As previously reported in the first half of 2014 the IPO market
was strong and the supply of suitable businesses prepared to list
by way of a reverse takeover was limited. More recently the level
of interest in Iafyds has improved and in recent months the Iafyds
board has considered a number of possible opportunities.
Current position
Iafyds has entered in a Memorandum of Understanding ("MOU") to
invest GBP2.1 million by way of convertible loan into a retail
business operating in a clearly defined sub sector of the leisure
industry.
Henderson has, in principle, agreed to advance the GBP2.1
million due to be invested by Iafyds by way of a convertible loan
bearing the same terms as the convertible loan to be made by
Iafyds.
The Board of Iafyds expects formal Subscription Agreements to be
entered into between (1) the Company and the owners of the target
business and (2) between the Company and Henderson before the end
of February 2015. Following this the parties will work towards an
early reverse takeover, and in any event before the end of July
2015, at which point it will provide a further update on the
publication of an Admission Document including full details on the
target business.
Trading in the Company's shares
In the event that the Company is unable to implement its
investing policy within the next six months (i.e. by 7 August
2015), admission of the Company's shares will be cancelled in
accordance with Rule 41 of the AIM Rules.
For further information please contact:
Iafyds plc:
Clive Carver / Colin Hutchinson c/o +44 (0) 20 7886 2500
Panmure Gordon:
Hugh Morgan +44 (0) 20 7886 2500
This information is provided by RNS
The company news service from the London Stock Exchange
END
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