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|aries2000: LZYE Group PLC
Statement re share price movement & trading update
RNS Number : 9437W
LZYE Group PLC
06 January 2014
LZYE Group Plc
("LZYE" or the "Company")
Disposal of interest in Homantin Centre, temporary cessation of operations in Hong Kong and movement in Share Price
The Board has noted the significant share price movement on 3 January 2014 and provides the following update on recent developments.
On 18 December 2013, the Board announced it was in discussions with a Chinese company regarding a strategic partnership under which that company will become LZYE's strategic partner in China as well as providing ongoing access to finance to fund the Company's growth in this important market. The Board also announced that as part of these discussions the Chinese company was considering subscribing for new equity shares in LZYE in order to provide additional working capital at a likely price of 1p per share as well as purchasing shares from ISF Asset Manager Limited ("ISF"), a substantial shareholder in LZYE.
The Board announces that these discussions, whilst continuing, are likely to take longer than originally anticipated and are now expected to conclude during calendar Q1 of 2014.
On 20 December 2013, the board announced its interim results and reported that "The directors of the LZYE are satisfied with the progress of the operational restructuring and a second stage of restructuring, which mainly focus on the quality of programmes and resources allocation, will commence in near future."
Follow an approach received for the purchase of the Company's interest in the Homantin Centre in late December 2013, and upon realisation that the discussions regarding the Strategic Partnership were taking longer to conclude that original anticipated, the Board decided to temporarily cease provision of all educational services such as lessons, seminars and events in Hong Kong with immediate effect in order to reduce losses. The sale of the Homantin Centre concluded on 3 January 2013 and the consideration received was nominal.
The approximate monthly overhead of LZYE moving forward will be reduced to HK$200,000 and there will be nominal revenues from operations in China. The Company has minimal cash resources and will rely on the support of its principal shareholder, ISF, pending the outcome of the Strategic Partnership discussions.
The Board will keep shareholders informed of developments as matters develop. The Board has decided that if discussions with the strategic partner are not concluded by the 31 March 2014 they will write to shareholders with proposals to restructure the company.
For further information:
LZYE Group Plc
Tel: +44(0)20 7653 9850
Dominic Yeung, Chairman
Michelle Lai, Chief Executive
Zeus Capital (NOMAD and Broker)
Tel: +44 (0)161 831 1512
Ross Andrews, Andrew Jones|
|knigel: There might not even be a placing! Support has been provided by another investor if necessary. You have to weight up a) possible placing of circ 1p b) share price fall and c) benefits of the possible strategic tie up
IMO not much downside currently - but reasonable upside depending on the next update - continue to hold|
|ndogg: RNS was out 20 mins ago:
The Board of LZYE Group Plc notes the fall in the Company's share price over the last few days.
The Company is in discussions with a Chinese company regarding a strategic partnership. If these discussions successfully conclude then the Chinese company will become LZYE's strategic partner in China as well as providing ongoing access to finance to fund the Company's growth in this important market. As part of these discussions the Chinese company is considering subscribing for new equity shares in LZYE in order to provide additional working capital and purchasing shares from ISF Asset Manager Limited, a substantial shareholder in LZYE. Any such investment is likely to be at the nominal value of the ordinary shares being 1 pence per share.
If these discussions are not successful then LZYE will need to rely on its principal shareholder, ISF Asset Manager Limited, to provide ongoing financial support, such support has been confirmed in writing to the Board. The Company will make a further announcement as appropriate.
The Company also announces that it will be releasing its half year results for the period to 30 September 2013 on or before 31 December 2013.|
Lzye Grp share price data is direct from the London Stock Exchange