Transense Technologies lick its post EGM wounds
25 November 2007
Transense Technologies has found that shareholder activisim is alive and well, however the product of that same shareholder activism may well spell the end for the Company.
Transense announced in October that it was to acquire Bishop Technologies and raise £5.7 million in a placing at 23 pence per share. The announcement also stated that the Bishop management were to take over the running of Transense following the acquisition.
A small army of private shareholders did not like the proposed deal and caused a right old stink over the issue which resulted in a rejection of the proposals at the EGM held on 16th November. Both the acquisition and fundraising were rejected.
Following the no vote Transense announced last week that it had managed to raise £240,005 in a placing of shares at 23 pence in a transaction that was so small it did not require shareholder approval. The Company statement said that the funds raised would provide sufficient working capital to get Transense through to the end of February.
Transense is now facing the daunting task of trying to raise in excess of £3 million in a placing at a minimum of 23 pence per share subject to EGM approval. It would appear that at least some of the dissenting private shareholders are prepared to put their hands in their pockets to participate in any such placing.
The Transense Directors and Advisers, Noble & Company, must be feeling bruised by the experience and will not be relishing the coming months. Watch this space!
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