Trading in the shares of Green Compliance, which is chaired by Bob Holt, has been suspended because it is running short of cash.
The water, fire and pest control compliance services provider has been in discussions with its bank. A disposal in July left Green Compliance with net debt of around £7m but, although debt was lower, the disposal meant that new facilities and covenants had to be negotiated. Discussions continue and management says that it also plans a share issue to raise more cash. The short-term working capital position is uncertain.
At the suspension price of 1.1p a share, Green Compliance is valued at £1.38m. At the beginning of the year, Green Compliance raised £1.8m from a placing and open offer at 2p a share. Another share issue could be highly dilutive given the large debt figure.
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