Business
Suspension and Proposed Cancellation
Suspension and Proposed Cancellation.
About this update from Coral Products Plc
[{"type":"text","content":"\n \nRNS Number : 4154J Coral Products PLC 30 June 2011 \n\n30 June 2011\nCORAL PRODUCTS PLC\nSuspension, Proposed Cancellation and Notice of General Meeting\n \nThe Board of Coral Products Plc (\"the Company\") is pleased to announce that it will post a circular to shareholders today convening a general meeting (\"GM\") to be held at 2:30 p.m. on 18 July 2011 at the Haydock Thistle Hotel, Haydock, Merseyside WA11 9SG, at which it will seek shareholder approval for the proposed cancellation of admission to the premium segment of the Official List and to trading on the London Stock Exchange's main market for listed securities (\"Cancellation\") and detail its intention to apply for admission to trading on AIM (\"Admission\").\n \nThe circular will be available shortly on the Company's website at www.coralproducts.com.\n \nA consequence of the publication of the circular is that trading in the Company's ordinary shares will be suspended at 7:30 a.m. today until further notice. Further details regarding the suspension are included in section 2 below.\n \n \n1. Background to and reasons for Cancellation and Admission\n \nThe Board has been reviewing its strategy in recent months and the decision to move from the Official List to AIM is the next step in its broader plan to restore the Company to profitability and growth. At the time of the appointment of Joe Grimmond as Non-Executive Director in March 2011, the Company announced that its future strategy included expansion into associated areas of the existing business in order to develop a more broadly based manufacturing group, both from organic growth and through identification of suitable acquisitions.\n \nThe Board is currently reviewing a potential significant acquisition and fundraising which would, if agreed, be subject to shareholder approval in due course, but only if Cancellation is approved by shareholders at the GM. The acquisition target is a profitable, privately-owned company which markets and distributes plastic products. Due to its size, the acquisition would constitute a reverse takeover under the Listing Rules and the AIM Rules for Companies. The Board believes that the business would complement the Company's existing business and broaden the product base in l...