Shares in the former owner of fast-fashion retailer In The Style are to be suspended after it missed a deadline to complete a takeover deal.
Itsarm plc, which used to own the Salford-based brand, had been seeking a deal since July when boss of the company set to operate the 海角视频 National Lottery from February next year handed it a lifeline.
David Craven, the chief executive of Allwyn, joined the board alongside Jean-Paul Rohan as it set about trying to agree a takeover deal by the end of business on September 27.
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However, the company has now confirmed that a deal has not been reached despite the board currently exploring "two opportunities". Its shares will be suspended on September 28.
One of the possible deals, which includes a "consumer/retail focused" business, is at an "early stage". However, if a deal can be agreed, Itsarm said it hoped it would be completed by March 27, 2024. If not, its admission to trade on AIM would be cancelled.
Itsarm became as cash shell when it sold its only operating company, In The Style, for £1.2m in a bid to avoid entering administration.
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In The Style founder Adam Frisby is the largest single shareholder in Itsarm, holding over 23%. Other major shareholders include Chelverton, Paul Masters, Afzal Valli, Andrew Batchelor, Alastair Bruce, Octopus and Canaccord.
In a statement to the London Stock Exchange, the business said: "Itsarm plc announces that, further to the announcement on 26 July 2023, the company has not completed a transaction which qualifies as an AIM Rule 14 transaction. Accordingly, the company's ordinary shares will be suspended from trading on AIM at 7:30 a.m. on 28 September 2023, pursuant to Rule 40 of the AIM Rules.
"The board continues to actively consider several business acquisition opportunities. Of these, there are two opportunities that the board are particularly focused, one of which is a consumer/retail focused business, with the intention of undertaking a qualifying AIM Rule 14 (reverse takeover) transaction by 27 March 2024.
"It should be noted however that these discussions are at an early stage and there can be no guarantee that they will progress to a completed transaction. If no such transaction is completed, admission to trading on AIM will be cancelled at 7:00 a.m. on 28 March 2024.
"The company's audited financial results for the year ended 31 March 2023 are required, pursuant to the AIM Rules, to be announced by 30 September 2023. Based upon recent conversations between the company and its auditors, the company will not be able to publish its FY23 annual report and accounts by this date.
"The company's ordinary shares will already have been suspended from 28 September 2023, but such suspension will therefore remain in effect until the company has both (a) published an admission document in respect of an AIM Rule 14 transaction, but also (b) having published its audited FY23 Annual Report and Accounts, in accordance with AIM Rule 19."