James Clark and David Pike were appointed Joint Administrators of 4D Pharma Plc – in Administration (the ‘Company’) on 24 June 2022.
Some useful information relating to the administration appointment and the status of the Company's shares is provided below:
Question 1. What is anadministration?
Answer 1.An administration is a formal insolvency process by which a company is placedunder the control of licensed Insolvency Practitioners to achieve objectiveslaid down by statute. At its most basic, the fundamental role of theAdministrator is to realise that entity’s assets for the benefit of thatentity’s creditors. A moratorium is provided by which creditors and others areprohibited from taking or pursuing legal proceedings against the company whileit is in administration.
Question 2. Why have the Company’s shares been suspended?
Answer 2. Because on Friday 24 June 2022, James Clark and David Pike of Interpath Advisory were appointed as joint administrators (the "Administrators") of 4D Pharma Plc (the "Company” or “4D”).
Question 3. Will there be any future value in my shares?
Answer 3. You should seek advice from an independent financial adviser. Following theAdministrators’ appointment, we are working to establish the likely outcome forcreditors and other stakeholders. Given that the position is currently unknown,we are not requesting details of any claims from shareholders at this time.
Question 4. Can I utilise the losses on my shares to offset future capitalgains?
Answer 4.You should seek advice from an independent financial adviser or tax consultantas to the impact of any losses on future capital gains.
Question 5. What information will be available for shareholders?
Answer 5.Within eight weeks of the administration appointment, the Administrators willwrite to shareholders of whose addresses we are aware notifying them that acopy of the Administrators’ proposals are available to view on our Insolvency Portal. In the meantime, we will make a copy of the notice of the Administrators’ appointmentas well as other letters and notices circulated to all known creditors of theCompany available on our Insolvency Portal. Please note that shareholders donot have the right to vote on matters arising in the administration, because ofthis the correspondence and interaction between the Administrators andshareholders may be very limited.