RNS Number : 6997X
28 November 2017
THE INFORMATION CONTAINED WITHIN THIS ANNOUNCEMENT IS DEEMED BY THE COMPANY TO CONSTITUTE INSIDE INFORMATION AS STIPULATED UNDER THE EU MARKET ABUSE REGULATION (596/2014). UPON THE PUBLICATION OF THE ANNOUNCEMENT VIA A REGULATORY INFORMATION SERVICE, THIS INFORMATION IS CONSIDERED TO BE IN THE PUBLIC DOMAIN.
("Torotrak" or the "Company")
Update re: financial update
Torotrak plc, a developer and supplier of emissions reduction and fuel efficiency technology for vehicles, provides an update on its financial position. As previously announced and as set out in the Company's report and accounts, the Company's ability to trade on a going concern basis was dependent on the Company's ability to successfully realise value from its assets or seek alternative sources of funding. The Company has been actively seeking to restructure the Group and find potential acquirers of its IVT / CVT technology, IP and assets. This has included the potential sale of Flybrid Automotive Limited. Whilst progress has been made in certain areas, unfortunately to date no final transactions have been concluded.
The Company is in ongoing discussions with a party in relation to the potential refinancing of the Group. However, on 27 November 2017, the Company received notice from Mr Jonathan Hilton and Mr Douglas Cross demanding immediate repayment of GBP1,746,171.73 pursuant to their understanding of the terms of the loan note agreement. The legitimacy of this notice is disputed by the Company. However, the uncertainty created by this loan note redemption notice has led to uncertainty surrounding the refinancing discussions. In the absence of a successful resolution of the refinancing position and/or the dispute with Mr Hilton and Mr Cross, the Company will have to consider appointing administrators.
In light of the above, it is highly unlikely that the Board will be in a position to publish its half year results for the six months ended 30 September 2017 by 30 November 2017. As at 30 September 2017, the cash balance of the Company was approximately GBP3.7 million (gross of the loan notes).
The Company will make further announcements in due course.
Torotrak plc Adam Robson, Chief Executive / Rex Vevers, Finance Director Tel: +44 1772 900931 Cantor Fitzgerald Europe (Financial Adviser & Broker) Marc Milmo / Will Goode Tel: +44 20 7894 7000 Tavistock (Financial PR) Simon Hudson / James Collins Tel: +44 20 7920 3150
This information is provided by RNS
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(END) Dow Jones Newswires
November 28, 2017 03:09 ET (08:09 GMT)