Phorm Shares Suspended from AIM Stock Market

Behavioural ad targeting and technology specialist Phorm has had its shares temporarily suspended from trading on the AIM stock market, after the firm failed to re-pay a short-term loan agreement.

Phorm sparked controversy in 2008 when it conducted secret trials of its Webwise software with telecoms supplier BT. After an investigation, the UK Government concluded that the system did not break EU data protection laws so long as users were given an easy option to opt out. The European Commission then stepped in with legal action against the UK Government, over its failure to force Phorm to comply with EU data protection and privacy rules.

At the beginning of the month, Phorm entered into an unsecured loan agreement with Meditor European Master Fund, with US$2.75m to be drawn down in three tranches. While Phorm was able to pay the first two instalments of the loan, it needed to secure further equity funding of at least £2.5m by yesterday's date. In an announcement made earlier, Phorm said it has been unable to secure the requisite equity funding by the deadline, and the ability to draw down under 'Tranche 3' had lapsed.

However, in a statement, Phorm said it is in 'advanced discussions' with certain shareholders and other parties regarding possible alternative financing and a further announcement will be made as soon as possible. The firm added that there can be no guarantee that such discussions will result in any funds being raised, and pending conclusion of those discussions the company has requested suspension of its shares from trading on the AIM (Alternative Investment Market), a sub-market of the London Stock Exchange.

Web site: www.phorm.com .

All articles 2006-23 written and edited by Mel Crowther and/or Nick Thomas, 2024- by Nick Thomas, unless otherwise stated.

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