Avisis plc

February 28, 2008 21:29 ET

Withdrawal From PLUS

LONDON, UNITED KINGDOM--(Marketwire - Feb. 28, 2008) - The directors of Avisis Plc announce today the Company's intention to withdraw its securities from the PLUS Market.

Under the PLUS rules, the Company is required to give shareholders a period of 10 business days to object to the intended withdrawal of its securities from PLUS Market. Any shareholder wishing to raise an objection should contact PLUS in confidence by 13 March 2008.

The reason for the withdrawal is the Company's lack of resources and its inability to raise further funds. In particular, the lack of cash has inhibited its ability to develop the SuperValu contracts, to the extent that the Company had to sell the initial signed SuperValu individual store contracts to a third party, Pierhouse Business Solutions Ltd, a successful Farnham based company, which supplies computer driven retail services to major retailers such as, Waitrose and Pret-a-Manger. In return, Avisis receives monies, on an agreed formula basis, to allow the pay-off its main trade creditors over the next 8 months, plus a small payment for each of the following two years.

In addition, the directors have agreed a formula for a potentially significant bonus at the end of September 2010.

Arrangements with the Company's creditors for delayed payments and in some cases, agreed reduced payments, are in place. As part of the process of reducing the Company's liabilities, the directors have ceased all unnecessary costs. As part of this cost cutting the directors intend to turn the Company into a private limited company.

The directors are not, and will not be paid any fees until the Company is profitable.

The board of the Company is actively involved in attempting to identify new projects that could generate new revenues and profits, albeit being recognised as a difficult task that would certainly require external funding.

THE DIRECTORS OF THE ISSUER ACCEPT RESPONSIBILITY FOR THE CONTENTS OF THIS ANNOUNCEMENT

Contact Information

  • Avisis plc
    Paul Roche
    0870 066 2306
    or
    Fisher Corporate Plc
    Gary Miller
    020 7388 7000