Suspension of trading - further update

    RNS Number : 5128G
  Playwize PLC
  23 October 2008
   

    Playwize plc
    'Playwize' or 'the Company'

    Suspension of trading - further update

    23 October 2008

    The board of directors of Playwize, the AIM quoted developer of software for the entertainment industry, gives the following
information, further to the announcement of 15 July regarding a temporary suspension of trading in the Company's shares:

    Due to very disappointing trading results, and the substantial losses incurred as a result, the Playwize group has ceased all trading
operations and made all of its employees redundant. In order to raise sufficient funds to pay creditors, the board of directors of the
Company has decided to seek shareholder approval for the sale of the proprietary software technology and other assets owned by the Company
and its subsidiaries, and contracts have been signed for the sale of these assets subject to the aforementioned approval being granted in a
general meeting of the Company (as required under Rule 15 of the AIM Rules). Following completion of the sale, and after settling all
creditors (other than its existing convertible loan notes), the Company will have approximately £40,000 cash remaining in the bank. This
amount is subject to the debenture in favour of the Headstart funds ("Headstart") given by the Company as security for the £700,000 of
convertible loan notes issued by the Company to Headstart, which are outstanding and have accrued interest of a further £25,000 to date.  

    Headstart has agreed to consider any request from a company which has been identified as a suitable target for the Company to acquire by
way of a reverse takeover, to convert their existing outstanding loan notes into Ordinary Shares. The Company has also reached an agreement
in principle with Headstart for Headstart to make a further £250,000 facility available to the Company at a future date to be agreed, for
the purpose of ensuring the attractiveness of the Company as a vehicle for a reverse takeover. The facility is subject to due diligence on
any identified reverse takeover target being carried out to Headstart's satisfaction.

    Shareholders have been sent a circular, incorporating a notice of general meeting, at which resolutions, including the following, will
be tabled:

    a. Approve the sale of substantially all of the business and assets of the Company
    b. Approve the Company's future investing strategy

    As soon as a suitable target for a reverse takeover has been identified and contracts have been exchanged for the purchase of the target
by the Company, a further announcement will be made.

    The Company's shares will remain suspended until such time as the Report and Accounts to 31 March 2008 are published in accordance with
AIM Rule 19.

    For further information, please contact:

    Playwize plc 
    John Corre Chairman
    Tel: + [phone]
    Email: [e-mail]

    HB Corporate:
    Imran Ahmad / Rory Creedon 
    Tel: [phone]

This information is provided by RNS
The company news service from the London Stock Exchange
 
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