AIM-listed cash shell Meriden Group saw trading in its shares suspended as it has failed to come through with an acquisition.
But the group, previously based in Halesowen, said it was in “detailed” talks on a potential reverse takeover and that due diligence investigations were now underway.
Meriden has previously said that it was interested in acquisition targets in the business services sector located in the UK, Europe or North America.
Under AIM rules the investment company, now based in Northwich in Cheshire, was required to complete a reverse takeover by Sunday.
But as it has not been able to finalise any deal, the junior market’s rules required trading in the cash shell to be suspended. Meriden now has a further six months to make an acquisition or its shares will be cancelled.
Meriden said in a statement: “Since the company has been unable to complete a reverse takeover prior to 8 June 2008, being 12 months after the company became an investing company pursuant to the AIM Rules, trading in the company’s shares on AIM has today been suspended.
“Restoration of trading will occur upon publication of the company’s circular and AIM admission document relating to the acquisition.”
Meriden Group formerly had interests in IT in the Black Country, with a base in Halesowen.
It transferred its registered office to Cheshire last year.
Former director Russell Stevens left last year “to pursue other business interests”.
Two new directors were appointed - Richard Charles Payne, a chartered accountant and corporate finance director at management consultants Bennett Brooks & Co, and Stephen Howard Black, principal of law firm Stephen Black Solicitors.