Redcentric starts compensation payments after censure by FCA

In June, Redcentric said it had reached a settlement with the Financial Conduct Authority in connection with the FCA's investigation into the company in relation to certain historical accounting misstatements.

As part of the settlement, the company has agreed to implement a restitution scheme amounting to approximately £11.4 million, to net purchasers of ordinary shares in the company between November 9 2015 and November 4 2016.

Today, Redcentric said it had made cash payments of £912,471.40 in connection with the restitution scheme to date.

In a statement, Redcentric said: "As previously announced at the time of the announcement of the scheme, the company had entered into a Settlement Deed with Harwood Capital whereby funds managed by it agreed to waive all their claims against the company in exchange for the issue of 308,000 ordinary shares, in the same manner as if they had participated in the scheme and elected to receive their entitlement wholly in Ordinary Shares.

"The ordinary shares issued to Harwood Capital under the terms of the Settlement Agreement were admitted to trading on AIM on 14 July 2020."

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