Troubled property services company Mercury Group is seeking shareholder approval for a share placing in a last ditch attempt to avoid suspending trading.
The AIM-listed group is attempting to raise funds for further investment in its core business, commercial property consultancy and estate agency Smith Melzack Pepper Angliss (SMPA).
The funds raised from the placing and open offer would also be used to “pay overdue creditors, recruit additional personnel to increase income and improve management succession and satisfy AIM Rules.”
A decision was to be made at an EGM this morning but the meeting was adjourned until next week without approval being given.
Company chairman Walter Goldsmith confirmed that ,should the proposed placing not be approved by shareholders, “trading in the company’s shares will be suspended on AIM and the directors would have to seek financial advice from an insolvency practitioner regarding their obligations.”
Shareholders received details of the placing in the middle of December last year, informing them the group was performing below expectation and results for the year ended 30 September 2006 would show material losses.
References: EGi News 11/01/07
