The former owner of online fashion brand In The Style has failed to secure the backing of its shareholders to de-list from the London Stock Exchange's AIM and enter liquidation.
Itsarm plc, the company left behind after the sale of the Salford business in March, said not enough shareholders had voted in favour of its plans for them to be approved by the required margins.
The firm is the cash shell that remained listed on AIM after the operating company was sold to a private equity firm for £1.2m in a bid to avoid administration.
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It outlined its plans to de-list and enter liquidation in April but it will now remain quoted and the proposed cancellation of its shares will not take place on May 30, as had been planned.
Following the news, shares in Itsarm surged by over 160% to around 0.60p.
The company has also confirmed that as of May 25, it had cash of approximately £248,000, down from £516,000 on April 25.
It added that it has contractual liabilities of around £72,000, down from £231,000.
The business also said it "has no trade but relatively significant on-going expenses".
A statement said: "Given the company's cash position, its current contractual liabilities, the contingent liabilities it has to consider and the ongoing cost run-rate, the directors, in consultation with the company's advisers, are assessing the solvency of the company and a further announcement will be made as soon as is practicably possible.
"It should be noted that the company has to assess the costs and timelines involved in any insolvent liquidation process when assessing its current solvency position.
"As previously stated, the company does not intend to enter into an acquisition or acquisitions which constitute a reverse takeover under Rule 14 of the AIM Rules.
"Furthermore, no approach has been received from any third-party presenting a credible option for the company to undertake such a transaction since becoming a cash shell and the company is not actively seeking such a solution.
"Similarly, the company has not received any proposals to provide additional funding to the company since becoming a cash shell."
In The Style's operating company, In The Style Fashion was bought by Baaj Capital LLP in March.
The brand was founded by Adam Frisby who led it to float on AIM in March 2021 with a market capitalisation of £105m.
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