Electric Guitar PLC will look to find a tune in the coming weeks after the spectacular failure of its previous venture.
Trading has resumed this morning in shares in the London-registered business following a four-month suspension. It has raised £300,000 in funds through the issuance of new shares and completed an organisation restructure, with the positions of CEO and COO made redundant.
In April last year the cash shell completed a reverser takeover of 3radical, a Bristol-based audience engagement platform, in a deal valued at £1.28m. The acquisition effectively brought 3radical to the London public markets with a market capitalisation of £4.7m.
However within months 3radical was placed into administration. On Christmas Eve, it was liquidated.
Electric Guitar had also acquired Mymyne Ltd in August ‘to unlock synergies and new intellectual property for 3radical’.
Mymyne’s accounts and confirmation statement are overdue and there is an active proposal to strike the business off Companies House, which would see all remaining assets pass to the Crown.
Electric Guitar had known liabilities of approximately £1m in December. Last week its creditors signed off its proposed Company Voluntary Arrangement, leading to the share issue.
The AIM-listed cash shell will now look to invest in or acquire companies which show significant potential for growth, cash-generation and a profitable exit in the medium term, it says, with a view to completing a reverse takeover.
It must do so on or before 24th June 2025, or it must seek re-admission to the AIM as an investing company.
John Hutchinson, John Regan and Caroline Worboys have resigned as directors of the company with immediate effect. Regan and Richard Horwood’s executive roles – CEO and COO respectively – have been made redundant.
Horwood’s directorship has become non-executive and Grahame Cook has been appointed non-executive chair.
Sarfraz Niaz Munshi has been appointed as a non-executive director of the company. Currently a director of Belmont Partners Ltd and Catenai plc, he was previously a director of Electric Guitar plc until 3rd May 2024.
The board of the company now comprises Cook, Horwood and Munshi.