Trading in the shares of Emmit has been suspended because of FCA concerns about a firm offering a scheme to transfer money from work pensions into Self-Invested Personal Pensions (SIPPs) invested in Emmit.
Trading in Emmit shares was suspended on 17 October but this news did not come to light until today. The FCA believes that inexperienced investors are being targeted. Emmit does not appear to be directly involved.
It is estimated that £3m-£4m has been invested in the scheme by 60-100 people. At the suspension price of 97.5p a share, Emmit is valued at £17.8m. The market in the shares is illiquid and it would be difficult to acquire £3m-£4m worth of shares even if it were at higher share prices. This level of trading has not gone through the market.
In September, Leo Knifton sold £184,000 of loan notes that were subsequently converted into just over 11 million shares - equivalent to 1.65p each. Irlanza Inversiones ended up with 5.19 million shares and Trans Phoenix Corporation 5 million shares.
Prior to this, Cairn resigned as nominated adviser and was replaced by Daniel Stewart.
Emmit, which previously supplied security products, is a shell that has made two investments - an environmental business and an oil and gas company - since it became a shell. Emmit has acquired a 20% stake in Ximax Environmental Solutions for £30,000 of shares issued at 6p each plus a warrant over 4.5m shares exercisable at 6p a share, while a 25% stake in Ximax Oil & Gas Solutions was acquired for £90,000 satisfied by 1.8m warrants exercisable at 6p each. Some of the warrants issued for the acquisitions have been exercised.
Ximax Environmental is a water treatment company which has developed a chlorine dioxide-based product called XzioX. This is used to treat reservoirs, rivers, boreholes, oil, gas and fracking fluids and kill bacteria. XzioX can be used in agriculture, food, oil, gas and drinks sectors. Ximax Oil & Gas has further developed the XzioX technology for the oil and gas industry and the enhanced product is sold as FlowXcel.
Progress has been made marketing XzioX to agricultural customers in the UK and Ireland as well as internationally. A distributor has signed a ten year agreement with ROLCO Energy Services in the US for the supply of FlowXcel for the unconventional oil industry.
Emmit has no revenues and net liabilities.
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