News blog

China Growth Opportunities Ltd

• BY: Andrew Hore |
• POSTED: 09/10/2014 |

N+1 Singer has resigned as nominated adviser to China Growth Opportunities Ltd and the company faces the suspension of trading in its shares on 13 October.

China Growth Opportunities then has one month to find another nominated adviser.

The company is trying to recapitalise its balance sheet. This would involve the repayment of shareholder loans and raising sufficient working capital. This would be followed by a larger fundraising.

The China-focused investment company had been selling off its portfolio and returning cash to shareholders until Sheffield United owner Kevin McCabe’s Scarborough Group came along and injected £200,000 at1p a share during 2012. Scarborough has also provided a loan facility of £150,000, of which £50,000 was drawn down in September 2014. The investing strategy is focused on property and retail businesses in China using Scarborough’s contacts in the country. No deals have been made so far.

The share price had already more than halved to 0.8p a share when trading was suspended.

Download the latest AIM Journal from http://www.hubinvest.com/AIMPDFSeptember2014_60.pdf