Kin Group PLC Update re suspension (4267Q)
September 11 2017 - 12:39PM
UK Regulatory
TIDMKIN
RNS Number : 4267Q
Kin Group PLC
11 September 2017
Kin Group Plc / Epic: KIN / Index: AIM
RNS ANNOUNCEMENT: The information communicated in this
announcement contains inside information for the purposes of
Article 7 of Regulation 596/2014.
For immediate release
11 September 2017
KIN GROUP PLC
('KIN' OR 'THE COMPANY' OR 'THE GROUP')
Update re suspension: Sale of Business and Certain Assets of Kin
Wellness Limited
On 18 July 2017, Kin Group Plc (AIM: KIN), the AIM-quoted
digital wellness provider for corporate organisations, requested
that trading on AIM in its Ordinary Shares be suspended, pending
clarification of its financial position, following the decision by
Belastock Capital L.P. ("Belastock"), not to proceed with the three
further tranches of the Convertible Loan Note, initially announced
on 15 May 2017.
On 23 August 2017, the Company announced that its operating
subsidiary Kin Wellness Limited had executed a notice of intention
to appoint Simon Harris and Ben Woodthorpe of ReSolve Partners
Limited as administrators to Kin Wellness Limited.
On 31 August, the Company announced that Simon Harris and Ben
Woodthorpe of ReSolve Partners Limited had been appointed as
administrators to Kin Wellness Limited with effect from 30 August
2017.
On 8 September 2017 the administrators completed the sale of the
business and certain assets of Kin Wellness Limited to SMG
Investment Holdings Pty Limited, an Australian company based in
Brisbane, ("SMG") for an aggregate cash consideration of GBP50,000.
The resultant realisations will be utilised to pay the creditors in
order of their priority ranking in the Administration. It is
unlikely there will be sufficient realisations in order to make a
material distribution to the Company. The Directors believe that
SMG will cover the costs required for the continuation of the Kin
Wellness service and will ensure that the service and operations
continue to be available to clients.
As previously announced the Directors remain in discussions with
potential investors to raise new equity funds for Kin Group Plc by
way of a placing. Such an equity fundraising would require the
approval of shareholders in General Meeting. As part of these
proposals, the Board expects to issue a proposal for a Company
Voluntary Arrangement with its creditors (within the meaning of
Part 1 of the Insolvency Act 1986) and has appointed Simon Harris
and Ben Woodthorpe of ReSolve Partners Limited to act as Nominees
to advise and assist with this process.
At this stage the Board is continuing to clarify the Company's
financial position and there is no guarantee that any new equity
fundraising will be completed successfully, and so the suspension
of trading in its ordinary shares on AIM will remain in place
whilst the Directors continue their discussions.
The Company will issue further announcements as appropriate.
-Ends-
For further information visit www.kinwellness.com
Contact:
Anna Gudmundson
/ Donald Stewart Kin Group Plc 020 7449 4949
SPARK Advisory
Mark Brady / Neil Partners Limited
Baldwin (Nominated Adviser) 020 3368 3551
Hybridan LLP,
Claire Louise Noyce Broker 020 3764 2341
This information is provided by RNS
The company news service from the London Stock Exchange
END
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