Forbidden Technologies plc
(“the Company” or “Forbidden”)
Forbidden announces that on 27 March 2007 the Directors of the Company became aware that the unaudited balance sheet in its unaudited management accounts showed that the Company’s net assets were £294,296 whereas the amount of its paid up share capital was £609,300. Pursuant to section 142 of the Companies Act 1985 (“the Act”), when the net assets of a public company are less than half of its called-up share capital, the directors of such company are under a duty to convene an extraordinary general meeting (“EGM”) to consider whether any, and if so what, steps should be taken to deal with the situation.
Accordingly, in accordance with section 142 of the Act, the Company is today writing to its shareholders with a notice convening an EGM to consider what steps should be taken to deal with the situation. The Company is also proposing to take its shareholders permission at that meeting to increase its borrowing limit from its current level to Â£2,000,000.
Although the Company requires further cash, the Directors are considering a number of potential sources of funds and are confident that they will be able to put the resources in place that will continue to support the Company’s operations. The proposed increase in the borrowing limit would facilitate one of these options.
The Directors believe that in the seven years of Forbidden’s existence they have followed a policy of prudent financial management. Specifically, the Company has no debt and has not taken any of the value of its intellectual property to the balance sheet. The Directors believe that the Company has an exceptional product which is timed perfectly for the market.