REG - Electric Guitar PLC - Liquidation of 3radical Limited

Electric GuitarAnnouncement

13/12/2024 07:00

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RNS Number : 9339P  Electric Guitar PLC  13 December 2024

13 December 2024

 

 

Electric Guitar PLC

("Electric Guitar" or the "Company")

 

Liquidation of 3radical Limited

 

Electric Guitar PLC (LSE: ELEG) announces that, further to the Company's
announcement of 28 November 2024 and following a marketing exercise of the
business and assets of 3radical Limited ("3radical") (the Group's main
operating subsidiary) as a going concern with the assistance of KRE Corporate
Recovery Limited ("KRE"), and after a number of enquiries and discussions, no
offers for the business as a going concern have been received.

 

As a result of 3radical's revenues and new business generation being
significantly below expectations of the Board and a constraint in capital, the
Company is unable to provide further funding to 3radical. The Company's Board
had been actively seeking additional capital, but in the event had been unable
to secure further investment either to continue to finance 3radical's
business, or to pursue its advertising and marketing technology 'buy and
build' mission. As a result, 3radical is not able to pay its debts as they
fall due and the Board of 3radical has instructed KRE to assist with placing
3radical into creditors' voluntary liquidation ("CVL") later this month.
Formal liquidation notices are being prepared and are expected to be issued
later today. KRE will now invite offers for 3radical's assets. As a result of
the CVL, the Company expects to incur a write-off of approximately £1 million
from the loans owed to it by 3radical.

 

Electric Guitar plc is not a trading company, has no operating revenues and,
once 3radical enters CVL, the Company will cease to own, control, or conduct
all or substantially all its previous trading business, activities or assets.
Therefore, for the purposes of the AIM Rules for Companies (the "AIM Rules"),
the Company is expected to be classified as an AIM Rule 15 cash shell upon
3radical entering into the CVL, which is expected to take place following a
shareholder meeting of 3radical on or around 23 December 2024 (the "Effective
Date"). As such, the Company will be required to make an acquisition or
acquisitions which constitute a reverse takeover under AIM Rule 14 or seek
re-admission to AIM as an investing company (as defined under the AIM Rules)
on or before the date falling six months from the Effective Date, failing
which the Company's ordinary shares would then be suspended from trading on
AIM pursuant to AIM Rule 40.

 

The Board of directors of Electric Guitar continues to review options
available to the Company including, inter alia, seeking financing to allow the
Company to pursue an acquisition strategy. The Company currently has minimal
cash balances and known creditors of approximately £1 million. Accordingly,
the Company's ordinary shares remain suspended from trading on AIM pending
clarification of the Company's financial position and further updates will be
provided as appropriate.

 

A further announcement will be made in due course.

 

 

For further information:

 

 Electric Guitar PLC                                     info@electricguitarplc.com

 John Regan, CEO

 KRE Corporate Recovery                                  01189 977 357

 Christopher Errington

 Allenby Capital (Nominated Adviser and Joint Broker)    020 3328 5656

 Jeremy Porter / Piers Shimwell / Dan Dearden-Williams

 Axis Capital Markets (Joint Broker)                     020 3026 0320

 Richard Hutchison

 GIS (Joint Broker)                                      020 7048 9400

 James Sheehan

 

Notes to Editors

 

Electric Guitar PLC (AIM: ELEG) is the provider of first-party data solutions
for the marketing and advertising industry, empowering businesses to realise
the value of their first-party data. In an era of changing consumer attitudes
towards the use of their data, tighter privacy legislation, and the demise of
third-party cookies, first-party data is now the key to success in digital
marketing. Electric Guitar's strategy has been to acquire and scale businesses
that help marketers maximise the value of first-party data by curating,
managing, and deploying it, and in doing so making Electric Guitar the
industry standard for first-party data solutions. As the first part of this
strategy, Electric Guitar acquired 3radical Limited, a company that utilises
its Software as a Service platform, 3radical Voco, to enable organisations to
engage individuals and request their data directly using interactive digital
experiences.

For further information please visit www.electricguitarplc.com
(http://www.electricguitarplc.com) .

 

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