Mobilewave Group PLC Update on funding and winding up petition (9327W)
February 01 2013 - 6:03AM
UK Regulatory
TIDMMBW
RNS Number : 9327W
Mobilewave Group PLC
01 February 2013
1 February 2013
MobileWave Group PLC
("MobileWave" or the "Company")
Update on Funding, Winding up petition & Litigation
The Board advises shareholders that agreement has been reached
with The Portman Estate ("Portman"), the landlords of 71 Gloucester
Place, to enter into an agreement to surrender the Company's lease
of the premises. This agreement calls for the Company to pay
Portman's legal expenses incurred in this matter as well as
acknowledging its debt to Portman. In addition, a lease surrender
fee will be payable by the Company. In return, Portman will not
seek to enforce the winding-up petition it has sought against the
Company (details of which were announced on 7 January 2013), which
will be heard in the High Court on 4 February, 2013. The agreement
with Portman will also contain an undertaking not to proceed
against the Company for payment of any outstanding debts before 31
August, 2013.
In order to fund the Portman legal costs and to settle debts
outstanding to smaller creditors, the Company has secured a loan of
US$25,000 each from two of the Company's Directors, Andy Polansky
and Vivake Gupta (the "Loans"). Interest will accrue and be rolled
up to the repayment date, being 29 January 2014. The Loans carry
interest at a rate of 10 per cent. per annum and are convertible at
the election of either of the lenders into ordinary shares in the
capital of the Company at a price of 0.35 pence per share, being
the price the ordinary share of the Company were trading at
immediately prior to suspension.
The provision of Loans by the two Directors, Vivake Gupta and
Andy Polansky, is deemed to be a related party transaction for the
purposes of Rule 13 of the AIM Rules for Companies. The Chairman of
the Company, Rory Stear, who is independent of this transaction,
having consulted with Charles Stanley Securities (the Company's
Nominated Adviser), considers the terms of the Loans to be fair and
reasonable insofar as the Company's shareholders are concerned and
in the best interest of MobileWave.
An additional loan of GBP20,000 has been promised by GDE Global
Inc., a substantial shareholder of the Company which has a
beneficial interest of 12.99 per cent. in the entire issued share
capital of MobileWave. The loan provided by GDE Global Inc., will
convert into new ordinary shares of MobileWave when the suspension
of trading in the securities of the Company is lifted.
The agreement with Portman and the raising of the Loans from the
Directors and the promised loan from GDE Global Inc., allows the
Company to meet its commitments in the near term and the Company
continues to both pursue its action against Devin Narang and to
work with the Asian investor to receive the investment that the
Company requires to discharge its commitments to its major
creditors and stabilise itself for the future.
Shareholders are aware that the Company has pursued a three
prong strategy in its pursuit of the debt owed by Devin Narang to
the Comany. Firstly, having been granted judgement in the amount of
GBP1,070,000 in the British Courts, the Company is seeking to
utilise the treaty that exists between India and the UK and execute
the judgement in India. The hearing in the Delhi Court took place
on31 January 2013 following this hearing, final argument has been
set for to be heard on 17 May 2013. Secondly, the Company is
seeking a bankruptcy order against Narang and this matter is
scheduled for a full hearing in the English Courts in May 2013.
Thirdly, the Company continues, on a Without Prejudice basis, to
seek to constructively engage with Mr. Narang to seek a settlement.
As stated in the Interim Results on 30 November 2012 the Board
continues to remain positive that a beneficial outcome will be
realized.
The long term future of the Company will be determined by
successfully sourcing sufficient new investment to pay its long
term creditors and provide working capital for the Company to move
forward. The Company's Chairman, Rory Stear has previously
announced that he has for some months been assisting an Asian
investor in concluding a substantial transaction that will, in
turn, result in the required investment by the Asian investor to
the Company. Negotiations for the successful conclusion of these
transactions are far advanced and the Board expects these to
conclude, and the Company to receive funding, during the first
quarter of 2013. These are highly complex transactions but the
decision of the individual Directors to provide Loans to the
Company at this critical stage, should demonstrate the Board's
optimism that this matter is close to conclusion and their
commitment to MobileWave.
As set out in preliminary results statement on 31 August 2012,
the Company's ability to meet its financial and working capital
requirements depend on further funding and creditor cooperation.
The Board remains confident that funding will become available
during Q1 2013 and will update shareholders accordingly.
In light of the uncertainty as to the timing and final outcome
of the discussions with the potential investor trading in the
Company's shares will remain suspended pending confirmation of the
financing.
A further announcement will be provided to shareholders as soon
as information becomes available.
For further information, please contact:
MobileWave Group plc
Rory Stear, Chairman (rstear@mobilewave.com)
Charles Stanley Securities, nominated adviser and broker:
Dugald J Carlean / Carl Holmes 020 7149 6000
This information is provided by RNS
The company news service from the London Stock Exchange
END
MSCUARUROAAURAR
Mobilewave (LSE:MBW)
Historical Stock Chart
From May 2024 to Jun 2024
Mobilewave (LSE:MBW)
Historical Stock Chart
From Jun 2023 to Jun 2024