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Highlights
- Crossword Cybersecurity requires up to £600,000 within six weeks to continue operations.
- The company is in discussions with major shareholders and potential investors to secure financial support.
- Due to financial difficulties, the company plans to sell its underlying business and assets to maximize value for creditors, engaging Knight Corporate Finance to manage the sale.
- The company's shares were suspended from trading on AIM on 27 September 2024, after failing to publish interim results.
Crossword Cybersecurity plc (LSE:CCS) has issued a statement regarding its financial situation, indicating a critical need to raise up to £600,000 within the next six weeks to ensure the continuation of its operations. This announcement follows a cost reduction program initiated on 14 August 2024, highlighting the company’s ongoing struggles amid challenging trading conditions.
Current Financial Review
The newly appointed management team has conducted a thorough review of the Group's financial position, concluding that immediate financial support is essential. The company has begun discussions with several major shareholders and potential investors to secure the necessary funding. However, there is no guarantee that any agreements will be finalized or that additional equity or debt financing will be obtained.
Proposed Sale of Business and Assets
In light of its financial difficulties, the Board believes that the most effective way to maximize value for creditors is through the sale of its underlying business and assets, referred to as the Proposed Sale. To facilitate this process, Crossword Cybersecurity has engaged Knight Corporate Finance Limited to oversee the sale.
The Board has cautioned stakeholders that, given the company's limited cash reserves and high levels of debt, there is no assurance that any value will ultimately be realized for shareholders from this Proposed Sale.
Share Trading Suspension
Crossword Cybersecurity’s shares were suspended from trading on AIM as of 27 September 2024 due to the non-publication of its interim results for the period ending 30 June 2024. This suspension highlights the urgency of the company’s financial situation and the need for a resolution.
