Mosaic's move for relisting delayed

A CHANGE of tack and hitches have delayed Mosaic Investments' attempts to arrange fresh banking facilities. Investors will have to wait until the new year before the suspension on dealings in Mosaic's shares, imposed in October, is lifted.

Dealings in the mini-conglomerate were frozen at 60p because the company was unable to meet the cash requirement of redeeming pounds 3m of preference stock owned by Rodney Day. He sold his advertising business to the company in 1988 for cash and shares.

Hugh Sykes, who recently took over as chairman from the deposed Brian Disbury, told yesterday's annual meeting: 'I have been undertaking a thorough review of the group's operations.

'This has involved discussions with our bankers, concerning the provision of new banking facilities, holders of deferred consideration and a number of others.'

The discussions, he added, were taken with the intention of ensuring 'that we can put the company on the best possible footing and achieve a relisting of the shares'.

One of the complexities of the talks involves the possible dilution of ordinary shareholders, brought about by any issue of shares to Mr Day and others as a substitute for their cash entitlements.

Mr Sykes said Mosaic, best known for its merchandising of the Teenage Hero Turtles, was trading profitably. Results for the half-year to 31 October will be released with the new financing agreements.