The Local Radio Company’s shareholders have rejected resolutions at this year’s General Meeting in order to raise much-needed funds. The proposed Open Offer to raise approximately £1.51 million is now at an impasse.
The troubled company was hoping that the proposed additional capital injection would have ensured it time to carry out a radical restructuring of the business' cost base while allowing shareholders to participate in any future profits.
At best, the Company's cash position is extremely tight. Taking into account the costs associated with the Open Offer and the additional costs likely to be incurred in connection with the Offer from UKRD, the company's cash flow projections show it requires an injection of funds by the end of April 2009 in order to continue trading.