Shares of the AIM-traded Astek Group (AKG.L), a supplier of consumables and technical equipment todentists in the UK and internationally, sank to a new low this week. What's happening? Is it the right time to capitulate? HotStocked.com has the story...
The situation at Astek Group is really serious. The company's shares were restored to trading on AIM only yesterday, after the company assured that is talks with a third party over a possible reverse takeover.
The group also said it expects operating results for its second half to March 31 to be in line with, or marginally better than, the first half.
Astek said, however, the overall results will be negatively impacted, due to advisory fees incurred related to the aborted acquisition. Astek expects to publish its preliminary results on July 31.
On December 10th, Astek Group reported a wider first-half pretax loss on decreased revenue, which was mainly due to lower-than-expected sales of its proprietary disposable air water syringe system Pro-Tip Plus in the United States.
The dental equipment maker reported a pretax loss of £215,701 for the six months to September, compared with £151,673 a year earlier, as revenues decreased to £504,409 from £594,842.
Looking ahead, Astek said it remains committed to new product design and development, achieving organic growth and securing complementary acquisitions.
In October, the company confirmed that it has signed a pre-contractual heads of terms agreement with a third party over a possible reverse takeover.
At the time of polishing up this article the stock was trading at a price of 1.31p, a fall of 26.67% thus far today. It looks like the company will have to accept this takeover bid, as it has no other options, really. As of today, the stock price continues deteriorating and only fresh cash injection could bring new sparkle into the company.
Reference
www.astekgroup.co.uk
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