Cientifica PLC Update on investments and strategy (9386X)

TIDMCTFA

RNS Number : 9386X

Cientifica PLC

25 November 2014

25 November 2014

Cientifica PLC

("Cientifica" or the "Company")

Update on investments and strategy

Cientifica, the AIM quoted investing company focusing on investment in businesses making use of advanced materials, graphene and emerging technologies, today provides an update on its investing strategy.

On 23 October 2014 the Company announced that the Directors have been in discussions with three potential investee businesses. Unfortunately, it has not been possible to finalise investments in these companies on terms which the Directors believe to be in the best interest of the Company's shareholders. In light of this the Directors have decided to explore all of the options available to Cientifica in order to have the suspension of the Company's shares from trading on AIM lifted. These options include: i) seeking alternative investments in line with the Company's existing investment strategy; ii) seeking shareholder approval for an alternate investing strategy; or iii) undertaking an acquisition that would constitute a reverse takeover.

In accordance with Rule 15 of the AIM Rules the Company's shares will remain suspended from trading on AIM until such time the Company has sufficiently implemented its investing strategy or undertakes a reverse takeover. However, there can be no guarantee that this will be achieved. If the Company's investing policy has not been implemented or a reverse takeover completed by 23 April 2015 (being six months from the date of its shares having been suspended), then admission of the Company's Ordinary Shares to trading on AIM will be cancelled.

The Company's financial position is currently constrained, with its creditors exceeding its cash holding. The Board has recently undertaken steps to substantially reduce the Company's overheads and is in discussions with a number of shareholders and creditors with a view to securing sufficient working capital to be able to pursue the options outlined above. One of the Company's major shareholders has indicated to the Board that it would be supportive should the Company require short term working capital. A further update will be made as appropriate.

For further information, please contact:

 
 Cientifica PLC 
 Tim Godwin, Executive Chairman           [phone] 
 
 Allenby Capital (Nominated Adviser) 
 Nick Naylor/James Reeve                  [phone] 
 
 Peterhouse Corporate Finance (Broker) 
 Lucy Williams/Duncan Vasey               [phone] 
 

This information is provided by RNS

The company news service from the London Stock Exchange

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