Milestone Group plc: Your Virtual Digital Department
Legal claim & Update on Working Capital
Milestone Group Plc
(“Milestone” or the “Company”)
Legal claim
AIM quoted Milestone Group PLC (AIM:MSG), the digital solutions provider, announces that it is in receipt of a legal claim from Mr Cormac Crawford, a shareholder in the Company (the “Claim”). The Claim follows certain allegations made by Mr Crawford against the Company and the Directors as announced on 28 February 2011.
The Claim is in relation to the issue of ordinary shares of 0.1 pence each in the capital of the Company (“Ordinary Shares”) to Ms Deborah White and Mr Guy van Zwanenberg as announced on 20 December 2010. The Claim alleges, inter alia, that the Board’s resolution to allot and issue such Ordinary Shares was not made in good faith and, whilst each of the allegations contained in the Claim are being brought against the individual Directors, the Company is also a named defendant.
As previously announced on 28 February 2011 and as addressed in the Chairman’s statement of the Financial Statement for the year ended 30 September 2010, the Board was of the opinion that the allegations made at that time were without any merit and would be vigorously defended. The Board continues to be of the opinion that the Claim is without any merit and will be vigorously defending the Claim.
Update on Working Capital
As at 12 April 2011, the Company had net cash of £47,468 following the receipt of a three month short term loan of £17,000. In addition, the Company also has a committed three month short term loan of £35,000, which it will draw down as required. Additionally, the Directors are also confident that the Company will, towards the end of this month, receive a VAT rebate of approximately £30,000 from HMRC. Following receipt of the loans and on the basis of receipt of the VAT rebate, the Directors believe that they will have adequate funds for at least the next six weeks, on the basis that the Company continues to be able to manage the timing of settlement of its current liabilities. However, in the event that the costs associated with defending the Claim are over and above the Directors current expectations, the Company’s cash position may be adversely impacted.
As such, as previously announced, the Company continues to be reliant on its ability to raise further funds in the immediate to short term. The Company can confirm that it is in discussions with a number of interested parties with regard to the provision of funding. However, should the Company be unsuccessful in raising further funds, this will have a material adverse effect on the Company’s financial position and operations. In the event that such activities are not successful the Company will not be able to continue trading in its current form. There can be no guarantee that such funding will be available, or on terms acceptable to the Company.
Further announcements will be made in due course as appropriate.
(“Milestone” or the “Company”)
Legal claim
AIM quoted Milestone Group PLC (AIM:MSG), the digital solutions provider, announces that it is in receipt of a legal claim from Mr Cormac Crawford, a shareholder in the Company (the “Claim”). The Claim follows certain allegations made by Mr Crawford against the Company and the Directors as announced on 28 February 2011.
The Claim is in relation to the issue of ordinary shares of 0.1 pence each in the capital of the Company (“Ordinary Shares”) to Ms Deborah White and Mr Guy van Zwanenberg as announced on 20 December 2010. The Claim alleges, inter alia, that the Board’s resolution to allot and issue such Ordinary Shares was not made in good faith and, whilst each of the allegations contained in the Claim are being brought against the individual Directors, the Company is also a named defendant.
As previously announced on 28 February 2011 and as addressed in the Chairman’s statement of the Financial Statement for the year ended 30 September 2010, the Board was of the opinion that the allegations made at that time were without any merit and would be vigorously defended. The Board continues to be of the opinion that the Claim is without any merit and will be vigorously defending the Claim.
Update on Working Capital
As at 12 April 2011, the Company had net cash of £47,468 following the receipt of a three month short term loan of £17,000. In addition, the Company also has a committed three month short term loan of £35,000, which it will draw down as required. Additionally, the Directors are also confident that the Company will, towards the end of this month, receive a VAT rebate of approximately £30,000 from HMRC. Following receipt of the loans and on the basis of receipt of the VAT rebate, the Directors believe that they will have adequate funds for at least the next six weeks, on the basis that the Company continues to be able to manage the timing of settlement of its current liabilities. However, in the event that the costs associated with defending the Claim are over and above the Directors current expectations, the Company’s cash position may be adversely impacted.
As such, as previously announced, the Company continues to be reliant on its ability to raise further funds in the immediate to short term. The Company can confirm that it is in discussions with a number of interested parties with regard to the provision of funding. However, should the Company be unsuccessful in raising further funds, this will have a material adverse effect on the Company’s financial position and operations. In the event that such activities are not successful the Company will not be able to continue trading in its current form. There can be no guarantee that such funding will be available, or on terms acceptable to the Company.
Further announcements will be made in due course as appropriate.
For further information, please contact:
Milestone Group Plc Today: 020 7457 2020
Deborah White, Chief Executive Thereafter: 020 7929 7826
Strand Hanson Limited, NOMAD
Richard Tulloch / David Altberg Tel: 020 7409 3494
Hybridan LLP, Broker
Claire Louise Noyce Tel: 020 7947 4350
College Hill, PR
Jamie Ramsay Tel: 020 7457 2020
Milestone Group Plc Today: 020 7457 2020
Deborah White, Chief Executive Thereafter: 020 7929 7826
Strand Hanson Limited, NOMAD
Richard Tulloch / David Altberg Tel: 020 7409 3494
Hybridan LLP, Broker
Claire Louise Noyce Tel: 020 7947 4350
College Hill, PR
Jamie Ramsay Tel: 020 7457 2020
Copyright Milestone Group PLC 2010 | Registered in England & Wales, Company Number 4689130
