(Alliance News) - DeepVerge PLC on Monday said it will sell Cork, Ireland-based Glanaco Ltd to its previous owners Tony Ryan and Michael Fitzgerald.
DeepVerge, a Dublin-based environmental and life sciences firm, said the sale to the owners, who are also the current management, for a consideration of EUR1 followed its June announcement that it will no longer support the ongoing costs of the operating businesses.
It explained that since it bought Glanaco for GBP1.1 million in March 2022, it has incurred costs and liabilities and has been left with insufficient cash to continue to operate as a going concern. "By transferring the business back to management the business and associated jobs will be saved, and the group's net creditors will reduce by approximately EUR500,000," DeepVerge said.
Glanaco reported a pretax loss of EUR75,451 in 2022, swung from a pretax profit of EUR39,449 in 2021, DeepVerge said.
DeepVerge added that it continues to expect that the current process will result in the sale, closure or administration of all its subsidiaries.
Last week, the company said its Chief Financial Officer Andrew Waters has resigned, with his replacement to be appointed in due course.
Shares in DeepVerge were suspended from trading on AIM on June 26, pending clarification of its financial position.
By Tom Budszus, Alliance News reporter
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