Electric Guitar becomes cash shell as subsidiary enters liquidation

(Sharecast News) - Electric Guitar confirmed on Tuesday that 3radical, previously its primary operating subsidiary, had entered creditors' voluntary liquidation following shareholder and creditor approval on 23 December. The AIM-traded firm said Christopher Errington and Paul Ellison of KRE Corporate Recovery were appointed as joint liquidators.

As a result of the liquidation, Electric Guitar was no longer controlling or conducting any trading business, activities, or assets, and was now classified as an AIM rule 15 cash shell.

Under AIM regulations, the company now needed to complete a reverse takeover or seek re-admission to AIM as an investing company within six months.

Failure to do so would result in the suspension of its shares from trading on AIM.

The board said it was exploring options to secure financing to pursue a potential acquisition strategy.

It disclosed minimal cash balances and liabilities of approximately £1m.

The company's ordinary shares remained suspended from AIM trading pending clarification of its financial position, with further updates to be announced as appropriate.

Reporting by Josh White for Sharecast.com.