Amigo Holdings PLC on Friday said it agreed to an exclusivity agreement with Michael Fleming to explore finding and completing a debt investment in the company or its subsidiaries.

Amigo shares surged in response, to 0.75 pence each on Friday morning in London from 0.31p on Thursday.

The exclusivity period runs until September 6.

The Bournemouth, England-based mid-cost credit provider said Fleming is a financier and shareholder.

The announcement comes after the company said that it started an orderly solvent wind-down in March after a prolonged unsuccessful capital raise process, and it tempered expectations on Friday.

‘Shareholders should note that there remain significant impediments to any new capital being made available to the business. In addition, establishing a new business and potentially creating value for shareholders in the longer term, has significant execution risks and will require regulatory approval. The board recognises the very low likelihood of a successful conclusion to any discussions arising because of this agreement,’ Amigo said.

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