Nektan to appoint administrators as trading is suspended
Trading Nektan shares on AIM suspended for a second time after supplier fails to secure funding
Nektan is seeking to appoint an administrator after failing to secure the necessary funds to keep the business operational.
Updating investors on 14 April, Nektan confirmed it has commenced the administration process in the Gibraltar courts after failing to obtain the “working capital necessary to secure the future of the company”.
The update caused Nektan shares on the AIM exchange to be suspended for the second time in 2020 after the supplier failed to publish its 2019 full year results in January.
An administrator is expected to be appointed later today.
Nektan faced financial difficulty at the back end of 2019 before offloading its loss-making B2C business to Grace Media, part of Active Win Group, in a £200,000 all-cash deal.
But further investment has not materialised, despite the Gibraltar-based business reporting strong B2B revenue growth for the second half of 2019.
Publishing its interim results for the second half of 2019 on 31 March, Nektan said: “These unaudited results are released at time of material uncertainty for the sector, from which Nektan is not immune.
“While progress has been made in the company’s transformation to a B2B business, in light of the unforeseen impact of Covid-19, the directors announce that they are in discussions with advisors and stakeholders regarding the future of the group, including but not limited to efforts to secure funding by the issue of new equity to provide the necessary additional working capital.
“The company, like others in the sector, faces material uncertainty as to the impact of Covid-19 on its business, including the possible consequential impact arising from how key stakeholders, including partners and suppliers, are able to respond.”
Nektan is a gaming technology and services provider specialising in mobile casino. It licenses its proprietary technology to operators including BetVictor.