We note the RNS of 30 April 2019 per HERE in which the Board of Eight Peaks propose to delist the shares subject to approval at the forthcoming (and hastily convened) EGM on 16 May 2019.
We have made a proposal to the Board as follows:
1. Align is prepared to invest £175,000 into the company at a price of 2.5p per share
2. Conditional on the investment by us into the company we ask for the resignation of Mr Monson and Mr Karim
3. The appointment to the Board upon receipt of the funds by us of Scott Richardson Brown as Non Exec Chairman (on a nominal salary)
4. Cancellation of the EGM proposing the delisting of the shares
Our plan would hive off the current portfolio into a private limited company (and invite shareholder representation to the Board of this vehicle) and a distribution in-specie be made to shareholders of this new Limited company. Cash remuneration here would be nominal. Depending upon our review of these assets, those worthy of investment/support we would actively pursue financing avenues.
The Plc would be left as a cash shell and current going rates for a cash shell are approx £500k (hence our investment price proposal). To lose this Plc status and the value of the cash shell seems madness to us on the part of the Board and the new management would proactively look for a value enhancing deal on the near horizon to attempt to restore shareholder value to the Group’s long suffering shareholders.
We thus urge all shareholders to contact management and the Nomad ref our plan if they support it aswell as voting AGAINST the forthcoming delist proposals. The delisting is not, in our opinion, in the best interests of shareholders.