REG - Fragrant Prosperity - Update on Intended Acquisition

Fragrant Prosperity HoldingsAnnouncement

08/03/2022 12:01

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RNS Number : 0418E  Fragrant Prosperity Holdings Ltd  08 March 2022

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Fragrant Prosperity Holdings Limited

 

("FPP" or the "Company")

 

 

Update on Intended Acquisition

 

 

Further to its statement on 24 May 2021, the Company announces that
discussions with CiiTECH about a planned reverse takeover of the Company, (the
"RTO" or "Intended Acquisition") have ceased. The exclusivity period agreed
between the parties in their letter of intent expired on 31 October 2021,
since when it has not been possible to conclude a combination of the two
businesses.

 

Simon Retter, Chairman, said:

"The Board will continue to evaluate potential transactions in line with its
strategy to invest in innovative technologies with high growth potential in
the fintech, health care and health care therapeutics sectors."

 

Clifton Flack, Founder and CEO of CiiTECH, said:

"The transaction faced a number of challenges as we worked with various groups
of shareholders to agree a deal. Movements in equity capital markets have been
volatile, not least driven by geopolitical uncertainty. CiiTECH has therefore
decided to withdraw from the process.

 

"CiiTECH continues to grow its business as its main markets emerge from the
pandemic and we implement our strategy for the business. We remain optimistic
for the future of the business and are exploring a range of options to
sustainably finance the company.

 

"We thank FPP's board for its efforts and wish them every success in pursuing
other opportunities."

 

The company is in the process of putting a request in to the FCA for the
shares to be restored and it is expected that the Company's ordinary shares
will resume trading on the Main Market of the London Stock Exchange in due
course. In the meantime, they remain suspended from trading.

A further announcement will be made as appropriate in due course.

Shareholders and potential target companies should note that the recent change
to the Listing Rules announced by the FCA in December 2021 that imposed a
minimum market capitalisation of £30m on companies coming to the Official
List does not apply to FPP in relation to its first reverse takeover, provided
that it makes a complete submission to the FCA for an eligibility  review for
listing and a prospectus review relating to that reverse takeover which does
not lapse and is not withdrawn, prior to 4pm on 1 December 2023.  The Company
will therefore, following a reverse takeover, be eligible to re-list with a
market capitalisation of £700,000 or more provided that it meets that
timeframe.

 

This announcement contains inside information for the purposes of Article 7 of
Regulation (EU) 596/2014 which is part of UK law by virtue of the European
Union (Withdrawal) Act 2018. Upon the publication of this announcement this
information is considered to be in the public domain.

 

- Ends -

 

 

Enquiries

 Fragrant Prosperity Holdings Limited  +44 (0)20 3137 1902

 Simon Retter

 

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