At long last there has been some action down in the AIM basement with NAKAMA, the struggling recruiter which has been constrained by a lack of cash.
The impasse that has existed here and which I have commented on more than once, has seen major shareholders First Point and Sheffield Haworth seemingly deadlocked and failing to agree as what to do with the business, appears to have shifted significantly this morning. An RNS out earlier, now sees all of the Nakama businesses/brands being sold to private recruiter Sanderson based in Bristol due to all other proposals to secure a lifeline for the business being exhausted.
Full shareholder approval is now required, but one assumes that First Point is on board with the latest developments and importantly supportive of a way forward.
There will now be a name change to Ridgecrest leaving the listing as an AIM shell, where as we stand, there are three distinct outcomes here on offer which should, presumably be resolved in the next few months.
These are, a reverse in of Sheffield Haworth or possibly another company looking to come to market, or neither of those options and the listing being cancelled.
Either of the first two could provide potential relief or even upside for shareholders here, with the possibility of Sheffield Haworth coming in looking the best outcome to my eye.
This could quite possibly deliver significant future gains from the current level if it were to happen as it is a growing and profitable business in the Executive Search space.
At present, things do remain up in the air and holders such as myself will largely have to continue to bide our time until there is a conclusion.
Of course, failure of any new business reversing in will subsequently see shareholders wiped out, although the market has more or less priced that in for some time.