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DJ Ganapati plc Update:Proposed delisting, EGM and resignation CA

 
TIDMGANP 
 
1 April 2020 
 
                                 GANAPATI PLC 
               ("Ganapati Plc" or the "Group" or the "Company") 
 
                  Update: Proposed delisting, General Meeting 
                     and resignation of Corporate Adviser 
 
The Directors of Ganapati wish to inform shareholders of certain key 
developments in the business operations of the Company. 
 
GPJ LAWSUIT 
 
On the 13 March 2020 the Company was notified by the Securities Monitoring 
Commission of Japan Financial Services Agency ("JFSA") of their intention to 
bring a court case against the Company's subsidiary GPJ Venture Capital LLC 
("GPJ") in the Tokyo District Court. 
 
GPJ has been raising private funds to enable the growth of Ganapati PLC's 
operations and in particular the GanaEight Blockchain platform. 
 
Furthermore, it is now in the JFSA's view that GPJ has to acquire an 
appropriate licence to continue the fundraising activities according to the 
applicable laws within the Financial Services Act. The JFSA has announced their 
intention to restrict current method of fundraising by GPJ in the local courts. 
The JFSA will be making their case in due course and the final court ruling is 
likely to be achieved within several months according to the due process. Until 
the JFSA has made the successful case to the Tokyo District Courts, GPJ is 
permitted to carry on the fundraising as normal. Further implications of this 
case are not clearly known at present. 
 
COVID-19 ECONOMIC IMPACT & DECISION TO DELIST 
 
In addition to this regulatory uncertainty, the Company faces an even more 
present and real concern in the negative economic impacts of the COVID-19 
virus.  The Group is assessing a number of downside scenarios and is taking a 
number of actions to ensure that it protects the Group's liquidity, including 
plans for restructuring and streamlining the commercial operations of the 
business as well as seeking alternative forms of funding in order to carry on 
delivering the growth of the business for the shareholders and the investors. 
 
In furtherance of the Company's strategy to consolidate, restructure and 
provide greater return on investment to investors, the Directors have therefore 
concluded that it is in the best interests of the Company from growth and cost 
management point of view to delist from the AQSE Growth Market as the Company 
continues to evaluate other options that are available in private capital 
markets. 
 
As a result, the Directors propose to call a General Meeting for shareholders 
to approve the de-listing of the Company's ordinary shares (the "Shares") from 
the AQSE Growth Market. 
 
A further announcement on the date of the General Meeting will be made shortly. 
 
RESIGNATION OF CORPORATE ADVISER 
 
Alexander David Securities Limited has also resigned, with immediate effect as 
AQSE Growth Market Corporate Adviser to the Company. 
 
Contacts: 
 
Ganapati Plc 
Tony Drury, Chairman 
Telephone: 07973 737284 
Juliet Adelstein, Chief Executive Officer 
Telephone: 07493762929 
 
AQSE GROWTH MARKET CORPORATE ADVISER: 
Alexander David Securities Limited 
David Scott - Corporate Finance 
James Dewhurst - Corporate Broking 
Telephone: +44 (0) 20 7448 9820 
http://www.ad-securities.com 
 
 
 
END 
 

(END) Dow Jones Newswires

April 01, 2020 07:41 ET (11:41 GMT)