600 Group PLC Further re LOI and Bank Facilities (4852V)
December 04 2023 - 2:00AM
UK Regulatory
TIDMSIXH
RNS Number : 4852V
600 Group PLC
04 December 2023
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES
OF ARTICLE 7 OF EU REGULATION 596/2014, AS AMENDED (AS IT FORMS
PART OF UK DOMESTIC LAW BY VIRTUE OF THE EUROPEAN UNION
(WITHDRAWAL) ACT 2018.
4 December 2023
The 600 Group PLC
("600 Group", the "Group" or the "Company" and together with its
subsidiaries the "Group")
Further re Potential Disposal , Debt Facilities and Annual
Report
Further to the Company's announcement of 6 October 2023, the 600
Group provides an update in relation to the non-binding letter of
intent then entered into (the "LOI") in respect of the potential
disposal by the Group of a majority interest in the business and
assets of the Group's wholly owned TYKMA Electrox and Control Micro
Systems industrial laser businesses (the "Laser Business") to a
U.S. based operationally-oriented mid-market private equity firm
(the "Counterparty").
Discussions between the Group and the Counterparty continue in
relation to a potential disposal by the Company of the Laser
Businesses, however the parties have now mutually agreed to
terminate, without penalty and with immediate effect, the binding
period of exclusivity provided by the Group to the Counterparty in
relation to the proposed disposal which would otherwise have
expired on 27 December 2023.
Whilst the parties remain in discussions in relation to a
potential disposal, the Company cautions that there cannot be any
certainty that a potential disposal will be concluded and nor can
there be any certainty as to the terms on which any transaction may
be possible.
As announced by the Company on 31 October 2023, trading
conditions have remained difficult since the time of the Company's
Trading Update issued on 1 September 2023 and the Group has
continued to be loss making at an operating level.
As previously announced, the Group's existing US$5.5 million
fully drawn debt facilities (the "Facility") matured on 30 November
2023. Whilst the Company remains in discussions with its lender in
respect of an extension and amendment to the Facility, no extension
has yet been confirmed and the Group continues to consider various
financial alternatives to both the LOI and the Facility.
Further to the announcement made on 31 October 2023, the audit
process in respect of the Company's 2023 Annual Report for the year
ended 31 March 2023 (the "2023 Annual Report") remains ongoing.
Whilst the majority of audit field work has now been completed,
there remain a number of process and audit matters to be concluded,
including in relation to the Group's future funding position. As a
result, the 2023 Annual Report is now not expected to be published
prior to the end of 2023. The Board now anticipates that the 2023
Annual Report will be published prior to the end of February
2024.
As a result, trading in the Company's ordinary shares on AIM
will continue to be suspended pending publication of the 2023
Annual Report. Suspension from trading will be lifted with the
publication of the 2023 Annual Report in due course.
Notwithstanding the temporary suspension of trading in the
Company's ordinary shares, the Company will continue to make
announcements as and when there are any developments that require
announcement in accordance with its obligations under the AIM
Rules.
Further announcements will be made, as appropriate in due
course.
Enquiries:
The 600 Group PLC Tel: +1 407 818 1123
Paul Dupee, Executive Chairman
Cavendish Capital Markets Ltd (Nominated Adviser and Broker) Tel: 020 7220 0500
Ben Jeynes / Dan Hodkinson (Corporate Finance)
Henry Nicol (Sales)
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END
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