Stratmin Global Resources PLC (LON:STGR) has told investors that it still needs to undergo a reverse takeover if it wants its shares to continue to be traded on AIM.
After the company’s divestment of Graphmada earlier this month, it effectively became a cash shell and it must now make an acquisition which constitutes a reverse takeover to satisfy AIM rules.
The firm has previously said that it is “confident” that it can complete a transaction within the six month timeframe set out in the rules.
The other option, which the company hasn’t explicitly ruled out, is to be re-admitted to trading on AIM as an investing company, although StratMin said this will require it to raise at least £6mln.
The London-based company recently announced that it was entering into a joint venture (JV) alongside Tirupati Carbons and Chemical Pvt Ltd to develop the Vatomaina graphite project in Madagascar.
However, because the firm doesn’t hold a majority position in the JV, it is still classified as an AIM rule 15 cash shell.
As for its interim results, after restructuring its board StratMin managed to reduce its costs and cut its loss before tax significantly to £247,000 (H1 2015: £1.2mln).
At the end of period the group's cash position was £5,000, although it said that the recently announced US$1.5mln loan has improved the balance sheet.
Shares were flat at 1.6p.