Itsarm plc announced that its board of directors has entered into agreements to avoid the proposed compulsory liquidation which sent shares in the cash shell into freefall.
The key elements of the proposal are the appointment of David Craven and Jean-Paul Rohan as directors, the resignation of current directors James Sharp and Richard Monaghan, and the waiving of certain fees and notice periods by the outgoing directors.
This significantly reduces Itsarm’s liabilities and contingent liabilities, which provides the opportunity for the company to avoid the proposed compulsory liquidation and pursue a deal for the cash shell.
Itsarm shares were up 150% at the time of writing on Monday.
The current directors will request the withdrawal of the winding-up petition originally filed on June 5 at the scheduled court hearing on 26th July or by 31st July.
As of 20th July, Itsarm had approximately £223,000 in cash and liabilities reduced to around £140,000 through the waiving of fees.
Itsarm disposed of its operating assets related to the In The Style fashion website earlier this year for a consideration of £1.2m. Itsarm is now operating as a cash shell and has until 27th September to secure a deal.