On 29 March 2018 the Company announced, inter alia, that a freeze order allowing protection for SerVision Limited from its creditors was in place until 30 April 2018 (the "creditor protection period") and that Advocates Milo and Bar Hillel had been appointed as the trustees (the "Trustees") to oversee the creditor protection period. The Board has been informed that on 13 April 2018 the Trustees published an advertisement in a newspaper in Israel inviting offers from third parties to purchase SerVision Limited, an Israeli incorporated company. The Trustees have requested that offers are submitted to them by 16:00 Israel local time / 14:00 BST on 30 April 2018.
The Board anticipates that the Trustees will request the Jerusalem District Court in Israel (the "Court") to extend the creditor protection period beyond 30 April 2018 to enable expressions of interest to be considered and to provide additional time to enable a sale of SerVision Limited to a third party to take place in a period of creditor protection. The Board of the Company understands that at this stage the Trustees have not made such a request to the Court and there is no guarantee that an extension to the creditor protection period will be sought from the Trustees or be forthcoming from the Court.
The expected outcome from the Court process remains likely to be the transfer of SerVision Limited to a third party. As previously announced should the Company's main operating subsidiary or subsidiaries be divested from the Company then the Company will become an "AIM Rule 15 Cash Shell" under Rule 15 of the AIM Rules for Companies.
As an AIM Rule 15 Cash Shell, the Company would need to raise sufficient funds to continue operating and to complete an acquisition or acquisitions which constitute a reverse takeover under AIM Rule 14 within 6 months of becoming an AIM Rule 15 Cash Shell. In the event that the Company does not complete a reverse takeover under AIM Rule 14 within six months of becoming an AIM Rule 15 Cash Shell, the London Stock Exchange would suspend trading in the Company's shares pursuant to AIM Rule 40.
The Directors of the Company continue to be of the view that not much value, if any, will be returned to the Company from its debts and shareholding in SerVision Limited and are in continued discussions with the Company's advisers and third parties in respect of a potential creditors voluntary arrangement and associated fundraising to clear the Company's debts and provide it with sufficient capital to be an AIM Rule 15 Cash Shell.
The Company currently retains its 100% ownership of SerVision UK Limited, the Company's UK operating subsidiary, and the Company is currently considering its options with regards to SerVision UK Limited.
The Company's ordinary shares remain suspended from trading on AIM.
Further updates will be provided by the Company at the appropriate time.