BOS GLOBAL Holdings Limited (LON:BOS) is considering an approach from a potential funding partner as an alternative to doing business with Innovation Corporation.
Innovation is the company’s primary funding provider and is also the investment vehicle of former chief executive officer (CEO) Michael Travia, who is seeking to be reinstated as CEO.
In a stock market release on Monday the company said it has sought to maintain a constructive dialogue with Innovation but is still in the dark regarding Innovation’s funding solution for BOS; how the proposed new directors plan to complete the company’s audited accounts by the deadline of 29 December; and what steps, if any, have been made to secure a new nominated adviser (Nomad).
If the accounts for the year ending 30 June are not done by 29 December then BOS’s shares will be suspended, while the company’s current Nomad, RFC Ambrian, has served notice to quit and will do so on 10 January 2018.
The board has reconfirmed the interest of the alternative funding partner and that the level of funding proposed should cover the company's creditor position and the issues associated with the audit opinion. With this in mind, the board continues to work closely with its external accountants and auditor to finalise the company's accounts by 29 December 2017, but there is no guarantee it will hit the deadline.
The company is also sizing up its options in respect of acquiring a new Nomad.
Shareholders have been advised that there is a “strong risk” of some form of insolvency or administrating taking place, and that BOS has been sounding out an administration firm just in case.
Shares in BOS lost a third of their value at 0.565p.