Verdes plunges after investor money fails to arrive

Verdes Management, which offers independent advice and solutions to UK companies, lost a third of its value after announcing problems collecting money from a recent placing.

The firm announced a placing on 29th October 2012 to raise £550,000 in two separate subscriptions.

The first went off without a hitch and raised £211,000.

But the bigger of the two, the second subscription, has run into trouble.

It theoretically raised £339,000, but the firm said it had only collected £39,000 of that so far.

Verdes said the remaining amount - equivalent to 300m ordinary shares, which were supposed to be allotted on or before 7th December 2012 - had not been admitted to AIM as payment had not yet been received.

It said discussions are proceeding between the relevant parties and their advisers.

The company's shares were trading down 31.6% by 1100.

MM