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Verditek shares fall on cash shell plans

Verditek shares fell on Wednesday as the company unveiled plans to become a cash shell by disposing of its trading assets after months of financial pressures.

Verditek has agreed to sell its solar business to a new company established by its secured convertible loan note holders for £528,340 in the form of the surrender of the loan notes and £50k in cash.

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Verditek shares were down 22% at the time of writing.

This will make Verditek an AIM Rule 15 cash shell as it will no longer conduct its existing trading business or control its assets.

Verditek must complete a reverse takeover within 6 months or face being delisted from AIM. The company is in talks with a potential new management team to conduct a £300k fundraising and complete a reverse takeover within 6 months.

The deal is conditional on due diligence and shareholder approval. If it does not complete, Verditek may run out of cash by the 29 February 2024 target completion date and have to consider alternatives.

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