Business
Proposed Cancellation of Admi
Proposed Cancellation of Admi.
About this update from T42 Iot Tracking Solutions Plc
[{"type":"text","content":"\n RNS Number : 4805W Traction Technology PLC 11 June 2008 \n \n \nTraction Technology Plc ('Traction' or the 'Company)\n\nProposed Cancellation of Admission\n\nand\n\nNotice of General Meeting\n\nThe Company announces that, subject to shareholder approval, it has decided to cancel the admission to trading on AIM ('Cancellation') of the Company's ordinary shares of 3p each ('Shares') with effect from 10 July 2008.\n\nRule 41 of the AIM Rules for Companies states that the cancellation of admission of securities to AIM is conditional upon the consent of not less than 75% of the votes cast by the company's shareholders in general meeting. Accordingly, a circular has today been sent to shareholders of the Company giving details of, and seeking shareholder approval for, the proposed Cancellation.\n\nBackground\n\nOn 23 May 2008 the Company issued a trading statement to update the market in respect of the Company's trading and funding position (the 'Trading Statement'). \n\nAs described more fully in the Trading Statement, delays have been experienced in the Company's endeavours to jointly develop a range of single deck series hybrid vehicles for the UK bus market under a memorandum of understanding ('MOU') with the Optare Group ('Optare'). Specifically, the completion of a prototype vehicle which was anticipated in Spring 2008 in line with the terms of the MOU, is now not expected until the end of June 2008. The terms of the MOU also provided that, subject to the satisfaction of certain fuel economy and emissions targets, Optare would then have an option to build a minimum of 10 vehicles using the Traction hybrid system during 2008. \n\nIn light of the new timetable for the completion of the prototype vehicle, Traction now considers it unlikely that it will be requested to supply its hybrid power pack system to Optare for that purpose during 2008.\n\nAs a consequence of the delays described above and in the absence of a further fundraising, the Company also stated in the Trading Statement that it had cash resources as at 23 May 2008 which, based on the current cash burn rate and management forecasts, provided sufficient working capital for approximately two months of operations.\n\nWith these material limiting factors to growth e...