Nektan prepares to bring in administrators once again

Gaming content provider Nektan is once again seeking to appoint an administrator after it failed to secure the funding to continue as a going concern, which saw trading in its shares suspended for a second time in 2020.

Nektan launched the administrator process in the Gibraltar courts and said it expects to confirm an appointment later today (14 April).

As a result, Nektan has temporarily suspended the trading of its ordinary shares on the Alternative Investment Market (AIM) in London from 7:30am this morning.

The supplier said that it had been forced into taking action after it failed to secure funding to provide working capital that would allow the business to continue operating.

In January this year, Mark Phillips and Julie Swan of PCR London were appointed joint administrators of its Nektan Gibraltar (NGL) subsidiary by court order. The pair pushed through the sale of its B2C business to Active Win Group subsidiary Grace Media for a total consideration of £200,000, with the proceeds to be used to continue NGL as a going concern.

The provider did not go into further detail, but iGB has contacted Nektan for more information about the suspension.

The announcement comes despite Nektan last month revealing that it had been able to reduce its losses by 40% during the six months to 31 December 31, while revenue from its continuing operations more than doubled to £797,000 (1.0m/€917/075) in the same period.

In January, Nektan was suspended from trading in London after failing to publish its accounts for the year ending June 30, 2019 before the end of the year. However, it was restored to the AIM on 27 January this year, after publishing its accounts.