Kin Group Plc (LON:KIN) today confirmed the appointment of administrators to Kin Wellness Limited, turning its suspended stock into a ‘cash shell’ on AIM as discussions continue with potential investors to raise new equity funds for the group via a placing.
The digital wellness provider for corporate organisations requested a suspension of trading in its shares on AIM on July 18, pending clarification of its financial position, following the decision by Belastock Capital not to proceed with the three further tranches of a convertible loan note financing, initially announced on 15 May 2017.
READ: Kin Group brings in administrators after failing to secure additional funding
Last week, the company announced that, in order to facilitate a sale of the Kin Wellness as a going concern, it intended to appoint Simon Harris and Ben Woodthorpe of ReSolve Partners Limited as administrators to the business.
In a statement today, the group confirmed that Harris and Woodthorpe have been appointed as administrators with effect from yesterday.
As previously announced, Kin said it understands that with the appointment of administrators, the group has become a cash shell under Aim’s Rule 15 and, within six months, must make an acquisition or acquisitions which constitute a reverse takeover or be suspended from the market.
Expects to issue a proposal for a Company Voluntary Arrangement
The group said its directors remain in discussions with potential investors and, as part of these plans, it expects to issue a proposal for a Company Voluntary Arrangement with its creditors.
At this stage, the firm added, its 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 or any new equity fundraising will be completed successfully.
The company said it will issue further announcements as appropriate and the suspension of trading in its ordinary shares on AIM will remain in place whilst the discussions continue.