Shares of Itsarm experienced a significant decline on Wednesday following the company's announcement that its shares will be suspended from Thursday. This move comes as the company has yet to finalize a transaction that qualifies as a reverse takeover and has also delayed the publication of its results for fiscal 2023.
As of 1415 GMT, Itsarm shares have dropped by 25% or 0.32 pence, reaching 0.95 pence.
Talks for a Reverse Takeover
Formerly known as a successful womenswear fashion brand, Itsarm has revealed that it is currently engaged in preliminary discussions to undertake a reverse takeover of a consumer- and retail-focused business. The company aims to complete this transaction by March 27th, although it emphasizes that there is no guarantee that these discussions will progress into a finalized deal.
Impact on Trading Status
Should Itsarm fail to complete a transaction by March 28th, its admission to trading on AIM will be cancelled. This highlights the urgency for the company to secure a successful deal within the specified timeframe.
Delayed Publication of Results
Furthermore, Itsarm has acknowledged that it will not meet the deadline of September 30th to publish its results for the fiscal year ending March 31st. Consequently, the London-listed group has announced that its shares will be suspended starting September 28th at 0630 GMT. This suspension will only be lifted once Itsarm publishes an admission document related to the reverse takeover and its audited accounts for fiscal 2023.