Tau Capital Mulls Takeover, Plans USD1 Million Return To Shareholders (ALLISS)

LONDON (Alliance News) - Tau Capital PLC on Friday said it is reviewing takeover targets, but in ...

Alliance News 15 March, 2019 | 3:31PM
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LONDON (Alliance News) - Tau Capital PLC on Friday said it is reviewing takeover targets, but in the meantime has decided to return all of the net cash currently held by Tau to its shareholders.

In addition, the AIM-listed company said it has raised USD150,000 through a share placing to provide sufficient working capital to evaluate takeover options.

Tau said it issued 150.0 million shares at a price of USD0.001 each. The stock was untraded on Friday, last closing at USD0.02 a share, giving Tau a market capitalisation of GBP740,000.

Since the sale of its interest in pharmaceutical products distributor Stopharm LLP in October last year, Tau has been classified as cash shell and has been required to complete a takeover or readmit to trading on AIM as an investment company after raising at least GBP6 million.

If those requirements are not met by April 18, the company's shares will be suspended on AIM.

As of Friday, Tau said it holds USD1.2 million, which is equivalent to USD0.0242 per share. The company expects to complete the distribution of this USD1.2 million in cash by April 12, it said.

In addition, Tau said Gerwyn Williams and Nigel Burton will replace Non-Executive Directors Terence Mahony and Philip Lambert. The company said the move ensures that the board has sufficient experience and expertise in evaluating potential takeover opportunities.

By Evelina Grecenko; evelinagrecenko@alliancenews.com

Copyright 2019 Alliance News Limited. All Rights Reserved.

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Securities Mentioned in Article
Security Name Price Change (%) Morningstar Rating
Tau Capital Ord 0.00 999 -
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