Solco in share trade suspension

Shares in Welshpool-based water and power solutions company Solco Ltd have been suspended from quotation, after the failure of a placement with a German investment bank.

The company had not been able to finalise the placement of 8 million shares with Gebhard & Co. Wertpapierhandelsbank AG, announced on July 13, because the market has traded below the placement price of 18c.

Company secretary John Beech indicated that Solco would not be undertaking further negotiations with Gebhard, but thought it prudent to suspend quotation pending the release of an announcement regarding further financial review of its business and recapitalisation negotiations.

The Company was also undertaking a further financial review of its business in light of the estimated loss before income tax, depreciation and amortisation of $2.3 million for the 2005-2006 financial year following a review of operations and the resignations of both the chief executive and chief financial officers in April.

The Company has also commenced negotiations with parties to recapitalise the Company subject to the appropriate approvals. Mr Beech confirmed that they would seek shareholder assistance.

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