PCF Group suspends all new lending activity
Banking firm PCF Group announced the immediate suspension of all new lending activity on Wednesday, after Castle Trust Capital confirmed that it did not intend to make an offer for PCF.
The AIM-traded firm said it was continuing to be engaged in its objectives of seeking to raise further growth capital, despite a “difficult” market backdrop.
It was also separately continuing to explore other transactional options, through possible business, operational or asset sales or other options to give greater certainty to, and maximise value for, shareholders.
“As mentioned in its interim accounts for the six months ended 31 March, the raising of such capital is not guaranteed, nor is the completion of any of the other strategic options,” the board said in its statement.
“Given this uncertainty, together with the current challenging and volatile macro-economic conditions, the board of PCF has taken the decision, with effect from today, that it would be prudent for PCF Bank to suspend any new lending activities until further notice.
“The business will also accelerate a review process of its operational structure with the intention of further reducing its cost base.”
At 1119 BST, shares in PCF Group were down 44.44% at 1.25p.
Reporting by Josh White at Sharecast.com.