Eleksen Group plc Suspension

 

18 October 2007

 

The beginning of this month brought bad news to the Wearable Electronic expert Eleksen whose Board announced its intention to appoint administrators to the company.

Reading the press release makes one think how did a company that seemed to do so well and was becoming a flagship for the Smart or wearable electronics industry, get to this point? Is the industry of wearable electronics and, to this matter of intelligent garments ending before it even had a chance to grow? Is it a “bad idea”, or is it simply because people are not yet ready to accept these new products into their life?

"4 October 2007: The Board of Eleksen announces that it intends this morning to appoint administrators to the Company and has requested that trading in its ordinary shares be suspended with immediate effect.

On 28 August 2007, Eleksen released a trading statement and stated that the Company was in need of further funding. Subsequently, on 21 September 2007, Eleksen provided a further update in its interim results for six months to 30 June 2007. The announcement made clear the pressing need for further funding, which might or might not be forthcoming, and also highlighted potential going concerns issues. Since this time the directors have vigorously explored the available options. The directors have now concluded with regret that there are no proposals which offer sufficient certainty of raising additional funding within an acceptable timescale and therefore there is no alternative but to appoint administrators.

Consequently, the Company has requested that the London Stock Exchange plc suspend trading in its shares with immediate effect." (Source: http://www.eleksen.com/?page=news/index.asp&newsID=82 )

 

 


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