Mobilewave Group PLC Suspension from Trading on AIM (9974U)

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RNS Number : 9974U

Mobilewave Group PLC

07 January 2013

7 January 2013

MOBILEWAVE GROUP PLC

("MobileWave" or the "Company")

Suspension from trading on AIM

The Board announces that it has received a winding-up petition from The Portman Estate Nominees (1) Limited and The Portman Estate Nominees (2) Limited, being the landlord of 71 Gloucester Place, London, W1 ("Property"). The winding-up petition relates to the Company's failure to pay rent, interest, VAT and service charge in the total sum of GBP69,009.98. A date for a hearing of the winding-up petition has been set for 4 February 2013.

The Property had previously been assigned by the Company to Freeplay Market Development Limited ("Freeplay") in connection with the disposal of the Freeplay business in August 2008. However, as a result of the subsequent insolvency and appointment of an administrator over Freeplay the Company, as guarantor was obliged to take back responsibility for the Property.

The delay in paying the landlord has arisen as a result of the delay in completing the proposed investment by an Asian based investor in the Convertible Preference Shares of the Company as explained in the Chairman's statement concerning the announcement of the Company's results for the period ended 28 February 2012.

Rory Stear, Chairman of the Company is meeting representative from The Portman Estate Nominees (1) Limited and The Portman Estate Nominees (2) Limited on Thursday 10 January 2013 to discuss the winding-up petition.

The Board remains optimistic that the agreement with this investor will be completed prior to the hearing date for the winding-up petition. Completion of this investment will enable the Company to discharge the outstanding amounts due to the landlord which, in turn, will enable the withdrawal of the winding-up petition. However, should the investor fail to complete its investment before the hearing date, the Company will not be able to discharge the outstanding amounts due to the landlord unless it is able to raise funds elsewhere. If the Company is unable to raise the requisite funds it is expected that the winding-up petition will be granted by the court.

Consequently, in light of the uncertainty as to the timing and final outcome of the discussions with the potential investor, the Company has requested a suspension of trading of its securities on AIM, pending confirmation of the financing.

A further update will be provided to shareholders as soon as information becomes available.

For further information, please contact: MobileWave Group plc.

Rory Stear, Chairman ([e-mail])

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

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