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Cellcast Seeks Lexinta Legal Action Amid Forecast Swing To Profit

LONDON (Alliance News) - Cellcast PLC said Thursday it was seeking advice about pursuing claims ...

Alliance News 7 December, 2017 | 12:37PM
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LONDON (Alliance News) - Cellcast PLC said Thursday it was seeking advice about pursuing claims against Lexinta fund and its managers after it refused to provide details about investments within the fund, and expects to reverse losses in its second half to deliver a small profit for 2017.

The digital broadcaster said its holding in Lexinta had a carrying value of GBP754,358 on its books.

"Despite continued attempts by the company," Cellcast said, "the manager of the Lexinta fund has refused to engage in meaningful discussions with the fund's investors regarding the investments within the fund."

Cellcast added it was aware that other investors have complained to the Swiss financial regulator with a "large group" of investors filing a criminal complaint against the fund manager. Cellcast said it "understands that these filings have now been confirmed as being received and are being acted upon."

Cellcast has now engaged lawyers in London and Zurich to advise it on how to puruse claims against Lexinta fund, Lexinta AG - the fund manager - and the individual fund manager Bismark Badilla.

"The company is also seeking to work with other investors in the Lexinta fund to pursue a complementary course of action, so as to ensure that the company does not duplicate effort and work, and thereby save money, and maximise any returns", the company added. "The company is currently considering the appropriate level of provision against the carrying value of its investment in the Lexinta fund."

Cellcast also issued a trading update saying the "positive trading" has continued into the final months of the year. It now expects to "reverse" it losses over the first half of the year in the second half. As a consequence, it now expects to "small profit for the year as a whole."

Any profit, however, would be before any provision for the carrying value of the Lexinta fund.

"The company is cautiously optimistic about several of the new key initiatives it has undertaken in order to save costs and to generate new income streams going forward", Cellcast added. "Whilst the issues with the Lexinta fund are not welcomed the company has sufficient cash available to it for its working capital requirements."

Shares in Cellcast last closed at 3.75 pence.

By Ahren Lester; ahrenlester@alliancenews.com.

Copyright 2017 Alliance News Limited. All Rights Reserved.

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Securities Mentioned in Article
Security Name Price Change (%) Morningstar
Rating
Cellcast PLC 3.75 GBX 0.00 -
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