Interregnum M&A and fund raising

Interregnum has raised £10m through a share issue in order to increase the capital base of the company, In total 151,515,152 shares were placed at a price of 6.6p, with Schroder Investment Management, Artemis Investment Management and Liontrust among the buyers.

The company has also agreed terms over the acquisition of Quayside Corporate Services Limited, paid for in 90,909,091 new Interregnum shares and a cash amount equal to the net assets of Quayside at February 28 2006. In total the deal was worth £5.5m.

Founded in 1999, Quayside specializes in the restructuring and turnaround of struggling companies. So far it has worked on over 120 companies and is currently working on 33, and Interregnum believes the acquisition will give it access to a pipeline of prospective advisory and investment deals.

An EGM was held on February 21 discussed these issues as well as a resolution to reduce Interregnum’s capital. The firm is not allowed to pay dividends or make other payments until it has retained earnings. Its last audited accounts recorded a £17,498,480 aggregate retained loss, so dividends cannot be paid until the loss is eliminated. The resolution proposes to reduce the retained losses by cancelling £17,600,000 of the company’s share premium account.