Temporary Suspension & Business Update
06 May 2014
Business Update and Temporary Suspension from Trading on AIM
Pentagon Protection plc (AIM:PPR), announces that, further to its Business Update on 14 April 2014, the Board of the Company has requested that trading of the ordinary shares of the Company on the AIM Market are temporarily suspended with effect from today, pending clarification of the Group's financial position.
The Board confirms it is in advanced discussions with a former director and substantial shareholder of the Company in respect of a potential offer for SDS Group Limited ("SDS"), a wholly owned subsidiary of the Company, and over which he has an existing debenture over the assets and a fixed charge over the shares of SDS. Due to the nature of the potential transaction and the parties involved, any such transaction would be a related party transaction pursuant to AIM Rule 13 and would therefore require a fair and reasonable opinion to be given by the independent directors of the Company.
Subsequent to the Business Update of the Company on 14 April 2014, the financial condition and prospects of the Group have not improved. Irrespective of whether a transaction such as that currently under discussion with the former director is undertaken, if the Board cannot find appropriate additional short-term financing, it is likely that the Group, whether in its current form or post any disposal, the Board would need to appoint administrators to the Company.
The Board confirms that it continues to actively pursue a number of financing solutions and are in discussion with several potential interested parties for certain assets and/or divisions of the Group.
The Board will make further announcements in respect of the financial condition of the Group and potential offers as soon as practicable.
For further information, please contact:
|Pentagon Protection Plc
Steve Chambers, Managing Director
|Tel: 01923 221 910|
|Cantor Fitzgerald Europe (Nominated adviser)
David Foreman / Catherine Leftley
|Tel: 020 7894 7000|
|Allenby Capital (Broker)
Jeremy Porter / Graham Bell
|Tel: 020 3328 5656|