SyQic takeover falls through, shares remain suspended

14th Nov 2016 14:17

(ShareCast News) - SyQic's independent board updated the market on Monday, following the announcement by Yuma Ventures on 11 November that it does not intend to make an offer for SyQic.The AIM-traded company had initially announced on 20 April that it was in discussions with Jamal Hassim, chief executive of SyQic, and MMV Investments, a company owned by Johan Robb, in connection with a possible offer for the company.It has since announced a number of extensions to the timetable deadline, and subsequently clarified that Yuma, currently owned by Jamal Hassim, was being considered by as the entity to be used for any possible offer by the bidding parties for the company."Unfortunately, despite the best efforts of the independent directors of SyQic and their advisers to secure an acceptable offer for SyQic shareholders it has not been possible to agree a price and these offer discussions have now terminated," the board confirmed in a statement."As a result of the cessation of these discussion the company is no longer in an offer period as defined by the City Code."SyQic had announced on 7 November strong trading results for the year to 31 December 2015 and for the half year to 30 June."These results demonstrate that the company has been impeded by the problems of the late payment of trade receivables and the pressure this has placed on the cash funding of the company."The financial statements for the year ended 31 December 2015 contained a qualified audit opinion as the company's auditors were unable to obtain sufficient audit evidence to assess the recoverability of the company's trade debtors."Additionally, the board said the audit opinion for the year ended 31 December 2015 included an emphasis of matter as the company's ability to continue as a going concern is dependent on the collection of trade receivables and its ability to raise additional funding.As a result, the SyQic's shares remain suspended from trading on AIM. "The directors of SyQic are reviewing a number of options with their advisers to raise additional working capital for the company which will place the company on a sound financial footing."The directors are also working to have trading in the company's shares on AIM restored as soon as possible."In the event that trading in the company's shares is not restored within six months of the date of suspension, trading in the company's shares on AIM will be cancelled altogether," the board confirmed.