Power Capital Global Ltd Cessation of business and suspension of trading (9132P)

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RNS Number : 9132P

Power Capital Global Ltd

12 June 2015

POWER CAPITAL GLOBAL LIMITED

("the Company")

Cessation of business and proposed adoption of investing policy

Suspension of trading in the Company's shares

Board change

Background

On 29 September 2014, the Company announced that it was undertaking a strategic review of its Asia-based natural resources trading and logistics business in the light of adverse market conditions.

Since that time, the Board has not detected any improvement in market conditions and it considers that there is little prospect of an improvement in the foreseeable future. The Board has therefore now concluded that the Company should exit this business with immediate effect.

Following the cessation of its trading business, the Company is deemed to have become an investing company for the purposes of Rule 15 of the AIM Rules for Companies. In due course, the Company will despatch a circular to shareholders convening a general meeting to adopt an investing policy (the "Circular") to make investments in the gaming, leisure, entertainment, gambling and associated financial product sectors in Asia. Further details of the proposed investing policy will be contained in the Circular.

The Company is required either to complete a reverse takeover under Rule 14 of the AIM Rules or otherwise implement the investing policy (to the satisfaction of the London Stock Exchange) within twelve months of becoming an investing company.

Financial resources

The Company's cash balances at the end of April 2015 were under GBP20,000. The Board considers that the Company is able to pay its liabilities as they fall due by virtue of its loan facility with Kolarmy Technology Inc to fund its day to day working capital requirements (the undrawn amount of which is approximately US$2m). However, the Board recognises that the Company would need to increase its cash resources to a more meaningful level in order to facilitate the implementation of its proposed investing policy.

As part of this strategy, the Board plans to realise the Company's trading and investment assets. These consist principally of:

-- $1.8m of trade receivables due from PT Perdana Maju Utama ("PMU"), the counterparty of its offtake agreement in respect of the coal trading element of its natural resources trading and logistics business. However, the Board has no certainty as to the timing of receipt of these receivables; and

-- a small minority investment in Asia Pacific Investment Partners Limited ("APIP"), an unquoted company which the Board expects will realise in the region of GBP2.6m following APIP's proposed listing on the Singapore stock exchange. The listing process is ongoing but admission to trading is unlikely in the next 3 months. Here again, therefore, there is no certainty as to timing of the realisation of this investment.

The Board also plans to raise new equity and expects to complete a fundraise within the next few months.

Temporary suspension of trading in the Company's shares

In light of the Company's inability, given the current level of its cash balances as noted above, to implement an investing policy as required under Rule 15 of the AIM Rules, the Board has requested that trading in the Company's shares on AIM be suspended (pursuant to Rule 40 of the AIM Rules) pending the Company either completing a reverse takeover under Rule 14 of the AIM Rules or securing an increase in its cash balances sufficient to facilitate the implementation of its proposed investing policy to the satisfaction of the London Stock Exchange without completing a reverse takeover. The suspension will take effect from 7.30 am today.

Board change

Mr Simon Dewhurst will step down as Chief Executive Officer with immediate effect but will remain a Director. Mr Kung-Min Lin, the Company's Non-Executive Chairman, will assume the role of Chief Executive Officer until such time as a permanent appointment is made consistent with the new direction of the Company.

Notice of results

The Directors expect to publish the Company's Report and Accounts for the year ended 31 December 2014 by no later than 30 June 2015.

 
 
   Further information 
 
 Power Capital Global 
  Limited 
 
   Craig Niven             Tel: 01473 313800 
 
 Northland Capital 
  Partners Limited 
 
   Edward Hutton/Gerry     Tel: +44 (0)20 7382 1100 
   Beany

This information is provided by RNS

The company news service from the London Stock Exchange

END

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