When last checked, Swvl Holdings Corp. (Nasdaq: SWVL), a worldwide supplier of transformational tech-enabled mass transit solutions, was up on the charts, rising 47.22% to trade at $0.2017 in premarket activity.
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What options will SWVL explore?
In its final press release of the year, Swvl Holdings (SWVL) announced the creation of a special committee (the “Strategic Committee”) made up of independent members of the company’s board of directors (the “Board”). The committee was established by Swvl Holdings to investigate and assess any prospective strategic options that could be open to it.
A full range of strategic alternatives, such as a corporate sale, merger, or other business combination, the sale of all or some corporate assets, strategic investment, new loans or equity financings, or other significant transactions, will be taken into consideration by the Strategic Committee as part of the process (collectively, “Potential Strategic Transactions”).
The Strategic Committee will oversee all expressions of interest in any potential strategic transactions, consult with experts to determine how fair any transactions would be to investors and other stakeholders, and then offer suggestions to the Company’s Board on all relevant issues.
Until management considers that more disclosure is appropriate in the circumstances and in compliance with applicable securities rules, SWVL will not comment further with regard to the strategic review process and has not established a deadline for completion. In light of the ongoing global economic uncertainty economy and the turbulence in the financial markets, SWVL is adopting these actions to protect its capacity to produce enough cash from operations and outside financings to pay for working capital and fulfill its obligations.
SWVL may not be able to successfully compete and may be forced to tone down or completely stop parts or all of its operations in order to further cut costs or seek bankruptcy protection if it does not implement any of these Prospective Strategic Transactions or generate the cash flows required to expand its operations and invest in ongoing innovation.
What is SWVL’s alternate strategy?
In addition to this procedure, Swvl Holdings (SWVL) will proceed with existing and previously announced cost-cutting initiatives, such as ceasing some activities. As previously stated by SWVL, discontinuance may manifest as the insolvency or liquidation of local establishments.