Software company cancels shares after failing in reverse takeover

Sutton Coldfield software business, 365 Agile today announced it was suspend its shares on the Alternative Investment Market after failing to secure a reverse takeover agreement.

The company’s shares closed at zero last night and in a statement to the markets it said it continued to investment opportunities.

The statement said: “Following suspension of the company’s ordinary shares and as a result of the company having not yet made an acquisition, or acquisitions, which constitute a reverse takeover under AIM rules, or having otherwise sought re-admission as an investing company with the attendant requirement of raising at least £6m, the cancellation of the admission of the ordinary shares to trading on AIM is expected to occur at 7am on August 28.”

The board said it was committed to finding a suitable investment opportunity and was continuing to evaluate a number of potential acquisition opportunities which it would put to shareholders.

In the meantime, the company said it continued to be funded by the ongoing payments it receives from its software licence agreement with Castleton Technology.

In a warning to shareholders, it added: “There will be no public market or trading facility on any recognised investment exchange for the ordinary shares and, accordingly, the opportunity for shareholders to realise their investment in the company will be much more limited and there will be no public valuation of ordinary shares held.”

While shareholders will still have access to certain information following the cancellation of the shares, they will no longer have any protection afforded under the AIM rules.

365 Agile will also be subject to less stringent reporting requirements.

The company said shareholders would still be able to gather information about the firm through its website.