IMJ Imjack

 

TIDMIMJ 
 
RNS Number : 3130F 
imJack PLC 
11 January 2010 
 
 
 
imJack Plc 
("imJack" or the "Company") 
 Update on Working Capital Position 
and 
Suspension of Trading 
 
imJack plc (AIM: IMJ), the digital networking and media business, is today 
providing an update on the Company's working capital position and the 
availability of funding in relation to its loan facility for up to GBP500,000 
with Jeffrey Morris, a substantial shareholder in the Company (the "Loan 
Facility"). 
The Company has relied to a large extent on Mr Morris providing funds for the 
Company's ongoing working capital requirements. On 24 November 2009, the Company 
announced that it has been reliant in the short term on the availability of 
funding under the Loan Facility and that it had drawn down GBP350,000 of the 
GBP500,000 and served notice on Mr Morris of its intention to draw down the 
balance of GBP150,000 by 31 December 2009. Since the date of the Company's 
previous announcement it has become apparent that of the GBP350,000 previously 
drawn down, GBP147,000 of the funds were not provided to the Company. This is 
due to a dispute between Mr Morris and the Company over share conversion, about 
which the Company is taking legal advice. The provision of the remaining 
GBP150,000 is also subject to this dispute. Negotiations are currently taking 
place with Mr Morris to resolve this dispute. 
It should be noted that Wamey Limited ("Wamey"), a company controlled by Mr 
Morris' family, has provided GBP271,000 of support to the Company, which has 
been accrued in accordance with the terms of an existing contract between Wamey 
and the Company. This amount will be satisfied by the issue of new ordinary 
shares in the Company to Wamey in due course. 
The Company is in discussion with a number of potential investors with a view to 
raising interim working capital and expects to successfully conclude those 
negotiations shortly. 
Pending the resolution of such negotiations and as a result of the financial 
uncertainty caused by the lack of availability of funds under the Loan Facility 
agreement, the Company has requested that trading in its ordinary shares on AIM 
is suspended with immediate effect. The Company anticipates that following the 
conclusion of the fundraising referred to above, and the clarity which such 
equity investment would give in respect of its financial position, trading in 
the Company's ordinary shares on AIM would recommence. 
Further announcements will be made in due course. 
 
For further information, please contact: 
 
+-----------------------------------------+----------------------------------------+ 
| imJack Plc                              | Tel: 01653 618016                      | 
| Michael Abrahams, Chairman              | www.imjack.com                         | 
|                                         |                                        | 
+-----------------------------------------+----------------------------------------+ 
| Strand Hanson Limited (Nomad)           | Tel: 020 7409 3494                     | 
| James Harris / Paul Cocker              |                                        | 
|                                         |                                        | 
+-----------------------------------------+----------------------------------------+ 
| Daniel Stewart & Company Plc (Broker)   | Tel: 020 7776 6550                     | 
| Martin Lampshire / Stewart Dickson      |                                        | 
|                                         |                                        | 
+-----------------------------------------+----------------------------------------+ 
| Rawlings Financial PR Limited           | Tel: 01653 618016                      | 
| Catriona Valentine                      |                                        | 
|                                         |                                        | 
+-----------------------------------------+----------------------------------------+ 
 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
 SRSEAXFFFLKEEEF 
 

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