Vicorp Group is set to be the first company to make the round trip back to Plus.
Vicorp joined Ofex, as Plus-quoted was then known, in November 2004. The telecoms software company raised £1.3m net at 4p a share when it joined Aim on 21 June 2007.
Vicorp is leaving Aim as part of its cost cutting measures. There has been little trading in the shares and Vicorp believes that Plus-quoted will be a better market for a company of its size. At 0.18p a share, down 0.05p on the day, Vicorp is valued at £340,000.
The Aim quotation is expected to be cancelled on 24 April 2009 as long as it receives sufficient shareholder support at the general meeting on 16 April 2009. Zimmerman Adams plans to resign as nominated adviser on the day that the Aim quotation should be cancelled.
The timetable for admission to Plus-quoted has not been announced. There is no certainty that a company applying to Plus-quoted will be allowed on to the market but Vicorp should have a head start.
The main problem is likely to be lack of finance but Vicorp is in the process of raising £600,000 from an issue of shares and convertible loan notes. Cost savings of £900,000 a year have been identified, which is higher than the original target of £500,000.
If all of these things are put in place then Vicorp will have the working capital it needs in the short-term.
A loan application for £600,000 to the Royal Bank of Scotland was unsuccessful. This would have been backed by the new Enterprise Finance Guarantee.
Vicorp’s services are on the Nortel infrastructure and Nortel has gone into receivership in the UK, which has delayed the progress of projects. This does provide opportunities for Vicorp.
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