Digital wellness provider Kin Group Plc (LON:KIN) has brought in administrators to help it find a buyer after it failed to secure additional funding.
The AIM-quoted company had requested the suspension of its shares last month after its key lender, Belastock Capital, said it will not proceed with the release of three further tranches.
READ: Kin shares suspended as it continues discussions to raise additional financing
Despite interest from a “number of parties”, Kin said there had so far been no proposed solution that would enable the group to continue in its current form.
As a result, it has brought in administrators from ReSolve Partners in order to facilitate the sale of Kin Wellness, the group’s principal trading subsidiary.
“The directors believe that any offer for the business of Kin Wellness Limited is unlikely to result in a surplus which will be available to Kin Group Plc as there is a secured creditor, NW1.”
Assuming a buyer is found, Kin will become an AIM Rule 15 cash shell which means it would have to complete a reverse takeover within six months otherwise its shares will be suspended from trading.
The company – formerly known as Fitbug – added that its directors are also in discussion with potential investors about raising new equity funds for Kin Group.
“At this stage, the board is continuing to clarify the company's financial position, and there is no guarantee that either a disposal of the business of Kin Wellness Limited or any new equity fundraising will be completed successfully.”
Shares are still suspended.