Tricor warns about liquidation

AIM-listed investment company Tricor could be wound down if it cannot continue its investing policy, the firm warned on Monday in it half-year results.

AIM-listed investment company Tricor could be wound down if it cannot continue its investing policy, the firm warned on Monday in it half-year results.

Tricor, whose policy is to seek acquisitions that may amount to a reverse takeover, said that the "uncertainty surrounding the ongoing VAT Tribunal and the increased timescales that have occurred have resulted in unforeseen delays in the investment process and the ability of the company to implement its investing policy satisfactorily."

Shares have been suspended from trade since September 27th and will be delisted from trading on AIM unless the firm can "satisfactorily implement the investing policy or undertake a reverse takeover by March 27th 2013."

Tricor also said that it is facing "mounting pressure" from short-term creditors as it has not been able to raise enough cash to settle liabilities whilst it awaits the VAT Tribunal outcome. This outcome is not expected before the end of March.

"Whilst the board continues to pursue opportunities to implement the investing policy and raise additional funding, the directors are currently evaluating strategies to ensure the continued survival of the Company and to retain its admission to trading on AIM," said Executive Chairman Chan Fook Meng.

"However, if the directors efforts are unsuccessful, there is a risk that the company will be placed into liquidation and in such circumstances there are unlikely to be any returns to shareholders."

The company did not generate any revenue during the six months to September 30th, the same as last year, while the loss before tax reduced from £1,045,000 to £232,000.

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