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Abaco to return capital after disagreements over reverse takeovers
Abaco Capital expects to return capital to its shareholders after failing to make an acquisition in timeframe allotted by stock market rules.
AIM-listed Abaco, which had cash balances of approximately £19.2m as at 26 February 2018, was classified as a cash shell following the demerger of its formerly wholly owned subsidiary Oxford Pharmascience, which required the company to make an acquisition which constituted a reverse takeover under within six months.
Directors evaluated a number of potential takeover opportunities but after consulting shareholders representing over 70% of the company's total voting rights has concluded that a consensus is unlikely to be met.
The company had reported in December that it was considering investment opportunities in a number of sectors including pharmaceuticals, technology and biotechnology.
Abaco said it will now asses the most efficient mechanism through which to return capital and will make further announcements on the matter in the near future, including a timeline of upcoming events.
As of 0934 GMT, Abaco Capital's shares were up 18% at 1.48p.