Electric Guitar PLC (AIM:ELEG) is back on the market. The company’s shares will resume trading on AIM Tuesday morning following a major board shake-up and the completion of a fundraising round that sets it up as a so-called “cash shell” - a listed vehicle with no active business but a mandate to acquire one.
The business now has until June 24 to strike a deal that qualifies as a reverse takeover or re-list as an investing company under AIM rules. If it fails to do either, its shares will be suspended once again.
With the latest shake-up, the company has appointed a new board led by Grahame Cook as non-executive chair, joined by Richard Horwood and Sarfraz Munshi as non-executive directors. Three previous directors have stepped down, and executive roles including CEO and COO have been scrapped.
The company is eyeing acquisition targets with high growth and cash-generation potential and says it won’t restrict itself to any particular sector or geography.
Following the subscription and debt conversion, Electric Guitar now has more than 1.2 billion shares in issue. Mayford 1TN is the largest shareholder with just over 29% of the company, while Sanderson Capital Partners holds nearly 14%.
Cook holds around 8% of the company’s shares and has also been granted warrants to buy more, while Munshi owns just under 2.5%.
Additional shares linked to a previous Company Voluntary Arrangement and convertible loan notes are expected to come to market later this month.
For now, Electric Guitar is focused on dealmaking.