eve Sleep plc Appointment of Administrators (0184D)

TIDMEVE

RNS Number : 0184D

eve Sleep plc

17 October 2022

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF THE MARKET ABUSE REGULATION (EU) 596/2014 AS IT FORMS PART OF UK DOMESTIC LAW BY VIRTUE OF THE EUROPEAN UNION (WITHDRAWAL) ACT 2018 ("MAR"), AND IS DISCLOSED IN ACCORDANCE WITH THE COMPANY'S OBLIGATIONS UNDER ARTICLE 17 OF MAR.

eve Sleep plc

("eve", "eve sleep" or the "Company")

Appointment of Administrators

and

Resignation of Nominated Adviser

eve Sleep (AIM:EVE) the direct to consumer sleep wellness brand operating in the UK, Ireland and France, provides the following update on trading and its review of strategic and financing options.

Since 6 June 2022, the board of directors of eve (the "Board") has been undertaking a review of the Company's strategic and financing options, with a view to delivering additional funding to the Company and maximise value for its stakeholders (the "Strategic Review"). This Strategic Review has been conducted under the auspices of a formal sale process, as defined in the Takeover Code (the "Formal Sale Process"), which has enabled the Company to evaluate all possible corporate transactions, including the sale of certain parts or the whole of the Company or a potential equity fundraising, as well as other potential strategic options.

A number of indicative offers were received; however, following further discussions and the facilitation of due diligence, discussions with respect to a sale of the Company or in relation to an equity or other such fundraising transaction have not been successful.

Regrettably therefore, the Board has concluded that it is required to take the necessary steps to preserve value for creditors. Consequently, the Board has resolved to appoint Matthew Ingram and James Saunders, both of Kroll Advisory Ltd. c/o 4B Cornerblock, 2 Cornwall Street, Birmingham, B3 2DX, as joint administrators to eve Sleep plc (the "Joint Administrators"). It is anticipated that the Joint Administrators will be appointed by the court during the course of the day. As a consequence of the above, the Formal Sale Process has been terminated and the Company has ceased to be in an "offer period" as defined in the Takeover Code.

The likely outcome to creditors of the Company is currently unknown and it is not expected that the appointment of the Joint Administrators will enable there to be any return to the shareholders of eve.

Cheryl Calverley, CEO of eve sleep plc comments:

"It is heartbreaking to have to acknowledge that the best way to preserve value for creditors, those partners and suppliers that have helped us on this journey, is to now terminate the formal sale process and appoint administrators. Having seen the year start so brightly, with the efforts of the team over the past three years in rebuilding eve into a business fit for profitable growth coming to fruition, the frustration at the unprecedented downturn in the market over February and March was felt all the more keenly. Despite monumental efforts to restructure the business and reshape the cost base, the scale of eve was simply insufficient to withstand the economic tsunami that has gathered momentum over the past six months, and allow it to continue as an independent business. I want to thank, with all my heart the brilliant team here at eve, whose incredible loyalty, passion, and commitment to serve customers in our inimitable eve fashion through some very trying times, has been downright inspirational. On behalf of the board, I also want to thank shareholders for their loyalty and support; their position, and inevitable disappointment is keenly felt. Whilst it may be scant succor in the face of the current situation, we have moved heaven and earth to seek a way forward as an independent or acquired business, but ultimately prevailing market conditions just do not support that."

Suspension of Trading on AIM

In light of the above, the Board announces that it has requested a suspension of trading in the Company's ordinary shares on AIM with effect from 07.30 a.m. today (the "Suspension").

Resignation of Nominated Adviser

Consequently, finnCap Ltd has informed the Company of its intention to resign as Nominated Adviser and Broker to eve with immediate effect following Suspension. Pursuant to AIM Rule 1, if a replacement Nominated Adviser is not appointed within one month of today's date, the admission of the Company's shares to trading on AIM will be cancelled. The Company has no current intention of appointing a replacement Nominated Adviser.

For further information, please contact:

 
 eve Sleep plc                                                        via Cicero 
  Cheryl Calverley, Chief Executive Officer 
  Tim Parfitt, Chief Financial Officer 
 finnCap Ltd (NOMAD and Broker) 
  Matt Goode / Teddy Whiley / Fergus Sullivan - Corporate Finance 
  Alice Lane / Charlotte Sutcliffe - Equity Capital Markets          [phone] 
 Cicero 
  Alice McLaren                                                      [phone] 
 

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October 17, 2022 02:00 ET (06:00 GMT)