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Endeavors Application Virtualization and the Suspension of Shares

The application virtualization and streaming market is really just starting to come into its own.  And Endeavors is one such player in this market, a holder of numerous patents, and as of late, making a nice splash in the media with a number of positive news items:

Endeavors and TCB Technologies Sign Distribution Agreement

Endeavors and BCT Group Join Forces to Stream Applications

Endeavors Application Jukebox Hits the Streets

Endeavors Offers Free Application Virtualization and Streaming

Endeavors offers a free version of its application virtualization and streaming technology

But not all of the news as of late is good news. 

Interactive Investor reports:

The Company announced on 14th February 2008 that it had anticipated completing a major funding round during the first quarter of 2008 and a Prospectus proposing a placing and open offer was in final draft form. However, financial market conditions at that time were not favourable and the Company had not received commitments from potential placees to the level that the Directors considered necessary to maintain existing operations and finance the planned growth, although the process was still ongoing.

The Company subsequently, having reviewed the alternatives, proposed a new funding initiative based on attracting private and institutional investors using a combination of convertible loan notes and ordinary shares. The first two stages of a three stage process were successfully executed and the Company held a general meeting at which shareholders approved the changes necessary to meet the requirements of the proposed stage 3 investors. In addition the Company received approval from the tax authorities for the proposed treatment of VCT/EIS tax relief of such an investment.

The Company signed a binding heads of terms with a lead institutional investor based on syndication with other institutions.

Regrettably, other potential institutional investors have been unable to agree detailed terms, principally on matters of taxation and security and therefore the Company has been unable to complete the final stage of its fundraising.

The Company had intended to move from the Official List to AIM as part of the proposed corporate strategy and shareholder approval for such a move was obtained at the recent general meeting. A condition of the transfer is that the Directors of the Company must provide a confirmation of at least one year s working capital prior to admission to AIM.

The Directors are not able to make such an undertaking without a significant proportion of the intended stage 3 funding having been committed.

As a result, the transfer to AIM will not be proceeding as originally envisaged and the Directors of Endeavors plc have requested the the Company's ordinary shares be suspended from trading on the Official List with immediate effect.

David Lee, Chairman of Endeavors plc commented "The continued decline in institutional confidence has undermined our best efforts to satisfactorily conclude the proposed re-construction of the company and our inability to attract the relevant level of investment appropriate to the company's phase of development is deeply disappointing. We are exploring all available options"

A further announcement will be made in due course.

This information is provided by RNS The company news service from the London Stock Exchange

Published Monday, July 21, 2008 9:57 PM by David Marshall
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