Kin Group PLC Update re suspension: Administrators appointed (4199P)
31 August 2017 - 6:40PM
UK Regulatory
TIDMKIN
RNS Number : 4199P
Kin Group PLC
31 August 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
31 August 2017
KIN GROUP PLC
('KIN' OR 'THE COMPANY' OR 'THE GROUP')
Update re suspension: Administrators appointed to 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, in order to
facilitate a sale of the Kin Wellness Limited business as a going
concern, the directors of 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.
The Board can now confirm that Simon Harris and Ben Woodthorpe
of ReSolve Partners Limited have been appointed as administrators
to Kin Wellness Limited with effect from 30 August 2017.
As previously announced, the Board understands that with effect
from the appointment of administrators by Kin Wellness Limited, Kin
Group Plc has become a "Rule 15 Cash Shell" under Rule 15 of the
AIM Rules for Companies. Within six months of becoming an AIM Rule
15 cash shell, the Company must make an acquisition or acquisitions
which constitute(s) a reverse takeover under Rule 14 of the AIM
Rules for Companies. In the event that the Company does not
complete a reverse takeover under AIM Rule 14 within six months,
the Exchange will suspend trading in the Company's pursuant to AIM
Rule 40.
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 either a
disposal of the business of Kin Wellness Limited or 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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