MySQUAR Limited Investigation Update (8426G)

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RNS Number : 8426G

MySQUAR Limited

09 November 2018

9 November 2018

MySQUAR Limited

("MySQUAR" or the "Company")

Investigation Update

MySQUAR announces that following the announcement of 5(th) November that the two non-executive directors of the Company (being Neil Osborn and Stephen Austin) have carried out a preliminary investigation into the use of proceeds of the issue of GBP2.11m convertible bonds announced on 7(th) March 2018 and GBP2.22m convertible bonds announced on 20(th) June 2018.

This preliminary investigation has concluded that it appears that approximately GBP900,000 was paid out of Company funds to either third parties or former directors without either Board or Remuneration Committee approval (as appropriate) at the time such payments were made. The Company is considering its options for the recovery of such payments.

A number of staff have been made redundant in the Company's businesses to conserve cash. Trading in the businesses of the Company continues but the ongoing viability of these businesses depends upon urgent external funding to meet working capital requirements. A creditor of the Company has indicated that it is prepared, in principal, to provide such working capital and is currently conducting due diligence but there can be no guarantee that funding will be forthcoming. As a consequence, there remains a material uncertainty regarding the Company's working capital position and trading in the Company's shares will remain suspended pending clarification of the Company's financial condition.

A further announcement will be made as soon as there are any further developments in connection with the above matters.

Market Abuse Regulation (MAR) Disclosure

Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement.

For further information:

 
MySQUAR Limited 
Stephen Chong (Interim Chief      Tel: [phone] 
 Executive) 
 
SP Angel Corporate Finance 
 LLP 
Nominated Adviser & Joint         Tel: [phone] 
 Broker                            0470 
Stuart Gledhill / Soltan Tagiev 
 
SVS Securities plc 
 Joint Broker 
 
 Tom Curran                       [phone] 
Public Relations                   Tel: [phone] 
                                    0758 
Damien McCrystal                  [e-mail] 
 

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November 09, 2018 02:00 ET (07:00 GMT)