Kin Group Plc (LON:KIN) has said it needs current debts of approximately £2.27mln to be capitalised ahead of a possible placing.
To facilitate this, Kin is exploring the possibility of seeking a creditors' voluntary arrangement (CVA), which will need the approval of at least 75% of the company's unsecured creditors.
READ: Kin Group becomes 'cash shell' as administrators appointed to wellness business, discussions continue on possible placing
If a CVA is approved and additional funds can be raised, an application would then be made to AIM for the suspension to be lifted and trading in Kin shares to resume.
Kin Group is now a cash shell following the disposal of trading arm Kin Wellness. Without a CVA and placing, Kin may have to seek liquidation its statement said today.
Losses in the half year to June were £1.69mln (£1.65mln).