Nektan confirms appointment of joint administrators

Nektan has announced that the Supreme Court of Gibraltar has appointed Steven de Lara of Signature Litigation (Gibraltar) Limited and Ian Defty of CVR Global LLP as joint administrators to the business. The gaming content provider yesterday (14 April) said it was once again seeking to appoint an administrator after it failed to secure the funding to continue as a going concern. Nektan also temporarily suspended trading of its ordinary shares on the Alternative Investment Market (AIM) in London. Shore Capital and Corporate Limited and Shore Capital Stockbrokers Limited have now resigned as the nominated adviser and joint broker, respectively, to Nektan with immediate effect. If Nektan does not appoint a replacement nominated adviser within one month, admission of its securities to trading on the AIM will be cancelled. Nektan said it has no current intention of appointing a replacement nominated adviser. The supplier said it was forced into taking action after it failed to secure funding to provide working capital that would allow the business to continue operating. This marks the second time this year Nektan has appointed administrators, with Mark Phillips and Julie Swan of PCR London brought in as joint administrators of its Nektan Gibraltar (NGL) subsidiary by court order in January. The pair were able to push through the sale of Nektan’s B2C business to Active Win Group subsidiary Grace Media for a total consideration of £200,000 (€229,097/$250,071), with the proceeds to be used to continue NGL as a going concern. Also in January, Nektan was suspended from trading in London after failing to publish its accounts for the 12 months ending June 30, 2019 before the end of the year. However, it was restored to the AIM on 27 January after publishing its accounts. Last month, Nektan revealed it had been able to reduce its losses by 40% in the six months to 31 December 2019, while revenue from continuing operations more than doubled to £797,000 during the same period.