Good afternoon, it's Paul here.

I'm starting late today, but will be working on this report for the rest of the afternoon, as I've got the rest of the day free. The header shows the companies that have caught my eye today.

Interquest (LON:ITQ)

Share price: 24.6p (down 24.3% today)
No. shares: 38.7m
Market cap: £9.5m

Termination of NOMAD and suspension - this is a small recruitment company. The story so far goes like this. The Chairman & major shareholder, Gary Ashworth, together with the executive Directors, tried to buy out the company on the cheap, with a 42p cash offer recently. This was opposed by the only independent Director, and a group of shareholders who resisted the opportunistic & under-priced takeover bid. Chisbridge didn't get enough acceptances to de-list the company (75% needed). The major shareholder (via a takeover vehicle called Chisbridge Ltd) now owns 58.3% of Interquest. So the company has been in limbo recently, with it being unclear what would happen next.

It was clear to me that management wouldn't want to keep the stock market listing. Indeed I warned readers here on 29 Aug 2017 of what might be ahead, saying,

My opinion - I just don't trust management here, so for me it's uninvestable. The problem is that management tried to take it private on the cheap, but failed to secure enough acceptances. So it's now in limbo, with management in control, holding 58% of the company. What happens if they decide to de-list the shares? That would trigger a collapse in the share price probably.  (SCVR: 29 Aug 2017)

Unfortunately for shareholders, my prediction was exactly right.

However, what the company has now done can only be described as despicable.

Today, it announces that it provided 1 month's notice to its NOMAD on 10 Aug 2017, so that means under rule 1 of AIM (requirement to have a NOMAD) that the shares will be suspended on 9 Sep 2017.

It is also, bizarrely, claiming that it can't find another NOMAD to replace Panmures! How utterly ridiculous. I find this a ridiculous assertion, and I don't believe it;

InterQuest Group plc Group, the AIM listed company focused on digital recruitment and solutions, announces that it has provided one month's notice of termination to its nominated…

Unlock the rest of this article with a 14 day trial

or Unlock with your email

Already have an account?
Login here