Signs of life at Brainspark

Investment company Brainspark gave its shareholders some good news on Thursday, after Alfredo Villa, the Chief Executive Officer of the firm, asked the board to pay him all the money owed to him in shares.

He also asked the board to allow him to subscribe to a further 2,120,625 ordinary shares at 16p per share, providing the company with a further £339,300 in cash to clear all short term debts.

In total he is set to receive 3,125,000 shares.

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Brainspark also released a statement ahead of the court hearing on February 13th, where the company will petition to reverse the winding up order imposed on January 30th, saying that it has filed a witness declaration with the court.

It states that all creditors which have requested settlement have now been paid and that during 2011 the company's debt position was reduced by 40% from £10,781,000 to £6,488,000.

It also says that the debt position represents less than 25% of the company's assets. All existing creditors have been written to and 92% (representing £5,988,000) have signed a declaration stating they are against the winding up order and fully support a reversal of this decision.

The company is also currently in discussions with a London broker to conduct an institutional placing of shares to raise up to £2m, which will fund new investments and provide working capital in 2012.

The share price rose 39.05% to 18.25p by 11:48.

NR