REG - Deepverge PLC - Sale or closure of subsidiaries; share suspension

DeepvergeAnnouncement

26/06/2023 07:00

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RNS Number : 8118D  Deepverge PLC  26 June 2023

26 June 2023

 

DeepVerge plc

 

("DeepVerge" or "the Company" or "the Group")

 

Sale or closure of subsidiaries; suspension of trading of shares

 

DeepVerge (AIM: DVRG) announces an update regarding the potential sale of one
or more of its business units, and the financial position of DeepVerge, and
announces that trading of the Company's shares on AIM will be temporarily
suspended from 7.30 a.m. today, pending clarification of the Company's
financial position.

Sale or closure of subsidiaries

As announced on 5 June 2023, the Company has been, inter alia, seeking to sell
one or more of the principal business units with the aim of raising sufficient
funds to enable the remainder of the Group to continue to trade. Despite
receiving indicative offers for both the Labskin (including Skin Trust Club
and Rinocloud) and Modern Water businesses, in the Board's opinion none of
these offers appears likely to reach a successful conclusion on a timely
basis.

The Company previously announced (see RNSs of 17 April 2023 and 19 April 2023)
that it has been operating from a limited working capital position. The
Company's financial position is now such that it is unlikely that sufficient
funds will be realised - either from sale of Group businesses or assets, or
from introduction of new financing to the Group - in time to enable the
Company or its business units to continue to trade and to repay all creditors.
The Board has therefore taken the decision to no longer support the ongoing
costs of these businesses, and is seeking to realise whatever value is
possible through the sale of one or more of the Labskin, Modern Water and
Glanaco business units.

The Board's current expectation is that this process will result in the sale,
closure or administration of all Group subsidiaries.

Holding company - DeepVerge plc

DeepVerge plc is not a trading company and has no operating revenues. It
currently has around £0.2m of net liabilities, and further liabilities,
including those relating to the Group audit, are expected to crystallise
shortly. Given the situation regarding its subsidiaries as set out above,
there is uncertainty whether the Company will have sufficient funds to pay its
debts as they fall due.

 

Suspension of trading of shares

At the request of the Company, trading of the Company's shares on AIM will be
temporarily suspended from 7.30 a.m. today, pending clarification of the
Company's financial position.

Further updates will be given as appropriate.

 

 DeepVerge plc                                   Nigel Burton, Interim CEO  +44 (0) 7785 234447
 SPARK Advisory Partners Limited                 Neil Baldwin               +44 (0) 113 370 8974

 (Nominated Adviser)
 Turner Pope Investments (TPI) Limited (Broker)  Andy Thacker/James Pope    +44 (0) 20 3657 0050

 

This announcement contains inside information as stipulated under the UK
version of the Market Abuse Regulation No 596/2014 which is part of English
Law by virtue of the European (Withdrawal) Act 2018, as amended. On
publication of this announcement via a Regulatory Information Service, this
information is considered to be in the public domain.

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