GLEN Group, the Alternative Investment Market-listed company headed by formerAtlantic Telecom chief executive Graham Duncan, yesterday said it was at an "advanced stage of negotiations" to make a reverse takeover of an unnamed IT reseller.
The firm, which is based in a small unit on an industrial estate near Dalkeith and posted its first annual results since f loating on the AIM, unveiled widening pre-tax losses of GBP571,679 for the year to the end of September, compared with GBP204,049 last time.
Glen, whose business is focused on re-selling communications services, blamed its deepening losses on the costs of going public and expanding its sales team. However, turnover climbed 44-per cent to GBP538,397, compared with GBP373,848.
The company said the reverse takeover - whereby ownership of a larger firm is acquired by a smaller company - would be part-funded by a share placing to raise GBP2.5m.
A spokesman for Glen yesterday declined to name the target company.
Glen's shares were suspended on AIM, pending further announcements to shareholders. The company added that the "proposed transaction (and) fundraising . . . will be agreed and announced" by the end of January, subject to shareholder approval.
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