Coolabi this morning issued a statement saying that its shares have been suspended from the London Stock Exchange and confirmed it is in early stage discussions regarding a potential reverse takeover.
The statement said: "The board of the company notes the recent movement in its share price and confirms that it is in early stage discussions regarding a potential transaction which, should it proceed, would constitute a reverse takeover of the company under AIM rules.
"As a result, the company's shares will be suspended from trading in accordance with the AIM rules. The board will update shareholders of progress in due course."
Coolabi recently reported its interim results for the six months ending December 31st 2008.
Revenue for the period stood at £529,367 (December 13st 2007: £878,435), principally from licensing which has increased by 40 per cent. Click here for the full story.
Its licensed portfolio includes Purple Ronnie, Scarlett & Crimson, Bagpuss, The Clangers and Ivor the Engine among others.