The company’s net debt position as at February 9 was approximately £18.7m.
Cosalt requires further funding to meet working capital requirements in the
short term and is in discussions with potential providers.

More than 220 small shareholders, who together own 26pc of the company, used
this morning’s extraordinary general meeting in Grimsby to block Mr Ross’s
plans to turn Cosalt into a private company.

A campaign group called Stop Oval-Ross Takeover (Sort) claims to represent
minority shareholders holding 102m shares. Their opposition left Mr Ross
short of the required total of votes cast for the meeting.

Mr Ross, a Tory donor, has a 56pc stake in Cosalt – up from 15pc last November
– and was looking to gain the support of 90pc of Cosalt shares to take the
company private.

But he infuriated shareholders when he launched what they claimed was an “out
of the blue” and “derisory” offer in November at
0.1p-a-share, later revising it to 0.2p-a-share in December, valuing the
company at a “measly” £800,000.

The proposal was accepted by Cosalt’s board as the best option for a company
teetering on the brink of collapse.

But, as recently as mid-2008, shareholders had bought into the company at a
share price of 100p, leading to an enormous strength of feeling against Mr
Ross’ share offer, according to a Sort spokesman.

Yesterday, a spokesman for David Ross said the public listing was costing the
business £500,000 a year. “That money could be better used
elsewhere in the business,” he added. “Shareholders have the right
to do what they want to do, but [after the potential delisting] they will
still own the business and can still trade shares.”

Mr Ross has put about £17m into Cosalt by way of loans and bank guarantees. “The
only person that has put money into this business is David Ross,” the
spokesman said.

Cosalt shares were up 45.56pc to 1.31p at 14:34.