Business
Restoration of trading
Restoration of trading.
About this update from Hardide Plc
[{"type":"text","content":"\n RNS Number : 8547V Hardide PLC 03 June 2008 \n \n\n\n\n\n\nPress Release\n\n\n3 June 2008\n\n\n\n\n\nHardide plc \n\n('Hardide' or 'the Company')\n\nRestoration of trading\nPlacing\nStrategic Review\n\nThe Board of Hardide plc (AIM:HDD) announces that the suspension of trading of its Ordinary Shares on the AIM market, that commenced on 1 April 2008, will be lifted with effect from 2 p.m. on 3 June 2008.\n\nThe suspension of trading in the Ordinary Shares of the Company was requested by the Board whilst it investigated a corporate governance issue which linked to the financial outlook of the Company. A review of the financial outlook was necessary because of slower growth in the US business and a sudden and unexpected reduction in demand from one of the Company's major customers in the UK. This was due to a customer inventory issue affecting many suppliers and not related to the Company or its technology. Although the reduction in the UK appears to be temporary and orders are now resuming, it is likely to result in the Company's full year results to 30 September 2008 being markedly short of market expectations and thus a requirement for additional capital for day-to-day operations.\n\nDuring the period of suspension, the Board has been actively seeking a replacement Chief Executive Officer and is pleased to announce the appointment to that role of Dr. Graham Hine. A separate announcement covers this appointment in more detail.\n\nThe Board of Hardide has also reviewed the strategic options open to the Company and has reached agreement with a number of its shareholders to subscribe for 42,500,000 new Ordinary Shares at an issue price of 3 pence per share. In addition, one other existing shareholder has agreed to provide £225,000 in the form of a loan note with a coupon of 8 per cent. and convertible in to Ordinary Shares at a conversion price of 4.5 pence per share. The gross amount raised will be £1.5 million. The new capital will cover opera...