Business
Fundraising and change of activity
Fundraising and change of activity.
About this update from Tavistock Investments Plc
[{"type":"text","content":"\n \nRNS Number : 2274J SocialGO plc 15 July 2013 \n \n\n15 July 2013\n \nSOCIALGO PLC\n \nFUND RAISING, CHANGE OF FOCUS TO CREATE SHAREHOLDER VALUE\n \nThe board of SocialGO Plc (\"SocialGO\" or \"Company\") is pleased to announce that the Company has conditionally raised £200,000 (before expenses) of additional working capital and is to change its operational focus with a view to creating greater shareholder value.\n \nOn 3 May 2013 SocialGo announced the appointment of Oliver Cooke as executive chairman with a mandate to review the Company's existing operations and to consider options for delivering greater value to shareholders. The Company has now sent a circular to shareholders setting out its proposals following this review which, if implemented, would result in the Company divesting its existing operations to its shareholders and becoming an Investing Company and is convening a general meeting to consider a resolution to enact its proposals to be held at 11:00am on 29 July 2013 (\"General Meeting\").\n \nBACKGROUND\nThe Company's ordinary share capital was admitted to trading on AIM on 30 April 2004. The principal objectives of the Company's listing on AIM were to assist the development of the business by raising its profile with suppliers and customers alike and to provide it with access to development capital as the business grew. Unfortunately in the intervening period, despite significant injections of new capital, the business, in a number of commercial guises, has not flourished and, despite various initiatives to reduce the operating cost of the Company, the raising of further working capital is now considered to be impractical.\n \nIn the circumstances, the Directors no longer feel able to justify the costs associated with being a part of a publicly quoted entity and have resolved to move the Group's trading operations into a lower cost private company environment.\n \nDIVESTMENT AND BOARD CHANGES\nSubject to approval by Shareholders at the General Meeting, the Company has agreed to sell SocialGO IH Limited, which is the intermediate holding company for all of the Group's operating subsidiaries, to DWAV Limited, a newly incorporated company formed for the purpose of the Divestment and to be owned by the current shareholders of SocialGO (\"Shareholders\"), for a...