November 8, 2006
Kiotech resumes trading after reverse takeover of Agil
UK small caps managed to close higher, with Kiotech International shares trading lower in the wake of a reverse takeover, said dealers.
The FTSE small cap index closed 5.9 points higher at 3,650.0, while the FTSE 100 index ended the day 1.2 points lower at 6,148.1.
Kiotech International resumed trading on AIM at 3.87 pence (US$0.7), down 0.88, following the reverse takeover of Agil, the animal feed additives division of Lawrence.
Kiotech would place 176.5 million new ordinary shares at 3 pence (US$0.5) apiece to raise GBP 5.295 million (US$10) to fund the acquisition and provide working capital.
The deal would give the company a profitable business, but is more than a mouthful. As a reverse takeover, it would need shareholder approval.