We would love to hear your thoughts about our site and services, please take our survey here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
Is AIM different rules than main market for news of a TR1 ? Just wondered
The answer is in there somewhere I suspect.
I answered one of my own questions with the prospectus, 'Would EssarM/Shoreline be able to control who took over our interest in OPL226 if we didn't secure financing?' Clearly Shoreline can as they have first refusal on that interest.
Secondly the very last paragraph was interesting in that although the money was due to run out in July 2019 (for the purposes of the 2019 placing) the CEO clearly envisaged the possibility of the company running on beyond that date, '...any appointment of a monitor, if required, would not occur until July 2019 at the earliest (and potentially a number of months following this date, if the Company is able to reduce costs and therefore preserve its existing cash resources for a longer period of time).'
Cont'd:
'If the above future equity fundraisings, other financings or a possible corporate solution were unsuccessful, the Company would look to restructure its affairs under the supervision of a court appointed monitor and court ordered protection against creditors similar to an administration process in the United Kingdom, under which the Company would obtain a Court order giving it protection from its creditors for an amount of time (usually 30 days) in order to arrange its affairs. The timing of this action would depend on the Company’s view as to the point in time at which it was unable to pay its debts as they became due, but assuming that the Company reduces its general and administrative expenses to preserve its existing cash resources, the Company anticipates that any appointment of a monitor, if required, would not occur until July 2019 at the earliest (and potentially a number of months following this date, if the Company is able to reduce costs and therefore preserve its existing cash resources for a longer period of time).'
The 2019 prospectus tells us:
'However, in the event that such equity fundraising or other financing is not achieved (or are only achievable on terms which are not acceptable to the Company), the Group will also consider obtaining additional capital through either, debt financing, quasi-equity fund raising, an equity fundraising in the private markets of ShoreCan equity (assuming consent for the same is obtained from the Company’s joint venture partner in ShoreCan), the disposition of assets or a combination of the above. The timing of such potential ShoreCan equity fundraising would depend on the amount raised in any future equity fundraisings carried out by the Company, but the Company would seek to ensure that any such ShoreCan equity fundraising is completed prior to the time at which its working capital (taking into account the net proceeds of the Placing and any amount raised in any future equity fundraisings or other financing obtained by the Company) is depleted.
The Directors are confident that the Group would be able to achieve a disposition of its interest in ShoreCan, since the Shareholders’ Agreement relating to ShoreCan contains a right of first refusal enabling Shoreline to purchase the Group’s interest in the joint venture, and, in the event that Shoreline did not wish to purchase the Group’s interest, the Group would be free to sell such interest to a third party. The Directors believe that the Company’s interest in ShoreCan would be of interest to a number of potential buyers. The Directors are also confident that it would be possible to effect an equity fundraising of ShoreCan equity in the private markets on the basis that ShoreCan’s interests are highly prospective and may be of interest to a number of private investors.
However, in the event that it is not possible to use any such relevant means detailed above to obtain the required additional capital, then the Directors (notwithstanding any cost reductions that may have been or will be effected) do not believe that it will be possible for the Company to continue its operations independently. In such circumstances, the Directors would look to a corporate solution in the event that future equity fundraisings and dispositions of assets did not succeed. The Directors believe that the value of the Group’s assets would be best preserved in a corporate transaction. The Directors are confident that such a corporate solution would be achievable, as the Directors have a vast range of experience in acting as directors of public companies, and have been through similar processes in the past. Any such process would occur in the business and market context of the time it took place. However, as at the date of this Prospectus, the Directors have not actively considered such a corporate solution in relation to the Company as they do not believe that it is necessary at this stage.'
cont'd: