KDD fails to secure USD 10 mln funding, risks losing AIM listing

KDD Group (KDDG) has ended talks with majority shareholder Groumon Development (ultimately owned by Andrey Verevskiy, the largest shareholder in Warsaw-listed Kernel Holding) to secure a USD 10 mln loan, the company disclosed. No further details were provided. KDD’s board said it is reviewing other short-term funding options and noted that a failure to secure at least USD 5.0 mln by November 2012 could result in insolvency. KDD also revealed that failure to secure funding of about USD 34 mln – needed to retain the status of a “going concern” – would lead the LSE to revoke the admission rights of KDD’s shares to AIM trading. Shares are temporarily suspended from AIM trading after the company failed to publish audited financial statements by end-1H12.