Brookwell Limited Update and proposed members' voluntary liquidation (7055G)

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RNS Number : 7055G

Brookwell Limited

10 June 2013

Brookwell Limited ("Brookwell" or the "Company")

Update and proposed members' voluntary liquidation

As at 7 June 2013, the Company had five remaining investments, two of which have been delisted and are carried at nil value. The Directors and the Investment Manager expect that the realisation of the remaining investments may take up to June 2014. Given the level of the on-going costs in comparison to the net asset value, the Directors and the Investment Manager consider that the best outcome for shareholders will be achieved through a managed realisation as part of a solvent liquidation.

Accordingly the Board will be putting forward proposals for the Company to be put into a members' voluntary liquidation and for the cancellation of the D Shares from admission to trading on AIM. The proposals will require the approval of shareholders. On the basis that shareholder approval is given, the Board expects the liquidation of the Company to commence by early August 2013. The Investment Manager would be appointed by the liquidator on a realisation basis to assist in realising value from the investments. It is expected that the proposals will save the Company more than GBP100,000 in annual costs, after allowing for the costs of the proposals and the costs of the liquidator.

The Company's unaudited net assets as at 7 June 2013 before provision for liquidation costs amount to GBP3.5 million, equivalent to 51.50p per D Share as announced earlier today. The Board now considers it appropriate to provide on the Company's balance sheet for the remaining estimated costs of liquidating the Company and of running the Company until the appointment of the liquidator. In order to provide shareholders with relevant information future announcements of the Company's net asset value will be made on this basis.

The Board expects that a circular will be sent to shareholders shortly to convene an extraordinary general meeting.

For further information please contact:

Brookwell Limited

Tom Lancaster-King Tel: [phone]

Progressive AIM Realisation Limited (Investment manager)

Robert Legget Tel: [phone]

Deloitte Corporate Finance (Nominated adviser)

James Lewis / Paul Zimmerman Tel: [phone]

Marshall Securities Limited (Broker)

John Webb Tel: [phone]

10 June 2013

Website: www.brookwelllimited.com

This information is provided by RNS

The company news service from the London Stock Exchange

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