Verdes Management Agrees Reverse Takeover Of REACT, Places Shares (ALLISS)

LONDON (Alliance News) - AIM-listed investment company Verdes Management PLC said late Wednesday ...

Alliance News 29 July, 2015 | 5:51PM
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LONDON (Alliance News) - AIM-listed investment company Verdes Management PLC said late Wednesday it has agreed to acquire REACT SC Holding Ltd for Verdes shares worth GBP1.56 million and also has conditionally placed new shares to raise another GBP1.75 million.

REACT is a specialist provider of rapid-response, deep-cleaning and emergency-decontamination services for the likes of Network Rail, HM Prison Service, and UK local authorities and police services. REACT also works with a number of facilities management companies and the UK Highways Agency, Verdes said.

The acquisition, through the issue of 92.9 million new Verdes shares, constitutes a reverse takeover under AIM rules. Verdes has a market capitalisation of GBP1.44 million. It originally joined AIM in 2005 as an independent record label but sold its operating businesses in 2010 and became an investing company.

The additional share placing is at an issue price of 1.68p per share following a 1-for-25 share consolidation. Shareholders can take part in an open offer on the basis of 2 new shares for every 75 existing shares at the same price. The stock was last quoted at 0.166p per share in February.

Verdes said the new strategy for REACT will be to combine organic growth with acquisitions of small specialist companies in the sector.

Verdes also said its pretax loss narrowed to GBP179,470 in the six months to March 31 from GBP324,280 a year before. The company recorded no revenue in either half-year.

By Tom Waite;; @thomaslwaite

Copyright 2015 Alliance News Limited. All Rights Reserved.

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Verdes Management PLC 1.17 GBX -4.65 -

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