As part of the Acquisition in January 2013 the Company also effected a share consolidation resulting in a nominal value of 25 pence per share. The outlook for the Group with the new investment was very positive and the Board could not predict the failure of the investment and the subsequent fall in the Company’s share price.
Unfortunately today the Company's share price is lower than the nominal price per share and under applicable company law we are unable to issue any new shares to raise new funds for the Group until the nominal value of the shares is lowered. In order to do this, each of the existing shares has to be subdivided into two new shares one ordinary share of 1 pence nominal value that will be issued and tradable and the one deferred share of 24 pence nominal value, which will be a non voting and non tradable share. The Directors are in negotiation with potential investors for the Group but unless the resolution subdividing the shares is approved it will not be possible to complete the new investment proposals. We therefore kindly ask you to vote in favour of this resolution as well as the other resolutions.
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