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Last para of below post:
If a shareholder does not register their bank/building society account details and/or elect to receive the payment in CREST on a timely basis, the unclaimed dividend will be held securely until the shareholder has registered the appropriate information with Link Registrars (Link). These unclaimed dividends will not accrue any interest. Periodic sweeps by Link will continue until all dividends are claimed. It is also noted that shareholders are responsible for tracking the delivered payments with their banks or CREST account nominees."
AMUR MINERALS CORPORATION
(AIM: AMC)
Dividend Declaration
Amur Minerals Corporation ("Amur" or the "Company") is pleased to provide an update on the issuance of its special dividend of 1.8 pence per share. The special dividend is to be paid out of the funds received for the sale of its Russian Federation Kun-Manie nickel -copper asset. As the funds have been sourced from a non-sanctioned entity in Russia, payment of the dividend has required extraordinary non-typical enhanced governance approaches for implementation of payment. Shareholders of record at the close of business 2 June 2023 will be entitled to payment of the dividend projected to be 14 June 2023. The shares will go ex-dividend on 1 June 2023.
Given the transaction is based on the sale of a Russian asset, a ll shareholders need to register a dividend mandate for the Amur shareholding and receipt of the dividend. This varies based on the shareholder being an ordinary shareholder or a CREST shareholder.
Ordinary Shareholders (Certificated)
Ordinary shareholders (Certificated) are instructed to register your UK bank/building society account details in advance of the dividend record date by end of business 1 June 2023 to receive your cashless dividend projected to be 14 June 2023. If you do not register your details, your cashless dividend will be retained, until valid bank/building society details are received. Periodically, Link Registrars will conduct a review to identify post 1 June 2023 registered shareholders with payment being completed at a later date.
Depository Interest Shareholders (CREST)
Those that wish to receive payment in CREST, must undertake the necessary election in CREST before the record date of 2 June 2023. If a shareholder does not register their details, the cashless dividend will be retained, until valid details are received. As with the Ordinary Shareholders, Link Registrars will conduct periodic reviews to identify registered shareholders with payment being completed at a later date.
Online : Log in to the share portal at https://www.signalshares.com and click on 'Manage your account' followed by 'My bank details' then follow the instructions. If you have not registered for Signal Shares previously you will require your Investor Code (IVC) which can be found on your share certificate(s).
By phone : Call Link Group and speak to one of the team on 0371 664 0300 and after answering a few security questions, your mandate details can be updated. *Calls are charged at the standard geographic rate and will vary by provider. If you are outside the United Kingdom, please call +44 371 664 0300. Calls outside the United Kingdom will be charged at the applicable international rate. The helpline is open between 9.00am - 5.30pm, Monday to Friday excluding public holidays in England and Wales.
If a shareholder does not register their bank/building society account details and/or elect to receive the payment in CREST on a timely basis, the unclaime
Hi,
Called SPA again as Richard and Adam have not returned my call.
Spoke to Will who stated that SPA are aware of shareholder dissatisfaction and AMC have been contacted....
Anyone else want to try to apply some pressure...
Richard Morrison and/or Adam Cowl
Tel 0203 470 0470
BB2.
" To me receipt of funds is when the six months as a cash shell starts. It is also the understanding of the company. The six months started in March"
This is also my understanding, but with Robing Young in charge, anything is possible!!!
I think you are expanding the meaning of the original message. You said:-
"Paying out shareholders funds and finding a suitable RTO are separate issues. They are not related in any way shape or form."
It's the "..... not related in any way shape or form." that I take issue with. It's the meaning of the statement in the RNS "......completion of the Disposal" that could, I'm not saying does, but could link the two. The 6 months before having to delist runs from the "completion of the Disposal". Does the "completion of the Disposal" run from the time the monies are received and in Amur's bank account or from the date the 1.8p is paid to investors. If they are having trouble, for whatever reason, finalising the small print of an RTO they would want as much time as possible to conclude things. They could therefore argue that the 6 months runs from payment of the 1.8p to shareholders. If a case can be made for it to run from this date and if they are experiencing difficulties finalising the terms of an RTO they would want to delay paying the 1.8p for 90 days.
TDT
The wording of the paragraph is not in question. Its whether the receipt of funds from the sale or paying the 1.8p triggers the 6 month period they have to conclude an RTO. If they are having trouble finding an RTO target and the paying of the 1.8p is the point at which the 6 months starts the two are linked.
TDT
Hi,
Just seem that TW has done an article regarding the lack of any RNS since 14th March.......
I have today called SPA to ask them what is going on.
If others want to do the same, the contact name and telephone number is
Richard Morrison and/or Adam Cowl
Tel 0203 470 0470
Perhaps a bit of pressure on them and they may need to get AMC to update.
BB2
Sorry, I've developed a bit of a stutter :-)
"They are not related in any way shape or form."
Whether they are or not will depend on what constitutes "completion of the Disposal". If that's receipt of funds in Amur's account then you are correct. If "completion of the Disposal" runs from the distribution of funds to shareholders then they may well be linked. If an RTO is proving to be more difficult to tie down than expected they might want to push out to the full 90 days.
They have 6 months from "completion of the Disposal" before they either have to de-list or be re-admitted to trading on AIM as an investing company under AIM Rule 8. When the clock started ticking or if, in fact, it has is the issue.
TDT
TDT
TDT
On my part.
The delay arises because they are having no success whatsoever in identifying a suitable company for an RTO and are considering calling it a day any distributing all money held to shareholders.If only!
Middle Of June is My Expectation .But with everything Crossed !!!!!!!!
Not spent any 1.8p yet
RY and co went even more absent then usual . No doubt lining up their spends.
Still no ex divi date
Still no formal rns
This is Trotters independent Traders stuff again.
This time next year RY we'll be millionaires . .
Good luck to all LTHs here - I'm out for now. The delay in annoucb dividend dates is worrying - you'd have thought they'd have at least clarified the taxation status by this point.
No denying this is good value if you can buy at 1.7p and get a 1.8p special divi and hold shares in the shell.
Good luck.
Agnes
yes i have concern if dividend is capital return.
from tax point view.. as a lth, average 12p so a huge loss so far, if its a true dividend I will pat TAX on a LOSS !!!!!!!
But how can it be a divi... its capital being returned!!!
However for sure its going to be expensive to get accountamts or legal guys to help.
amc should have made it quite clear long ago this is capital return.
I think people must have concerns as to whether the special dividend is going to be subject to U.K. dividends tax or not.
The Board stated the following on the 3 October 2022
“With the key approvals now in hand, we shall complete our assessment of the classification of the dividend regarding shareholder taxation”
It is now the 22 May 2023 so 232 days have passed since they stated they have turned their full attention to this matter!
This matter should have been considered before the Board stated they would pay a special dividend!
232 days is more than sufficient time!
AGE
AMC will have around 5m of cash after the payment of the 1.80 p special dividend!
AGE
Surprising there are not that many people interested in buying AMC shares at say 1.70p to then get a 1.80p special dividend by the 12 June 2023 and AMC stated that if they do not find an RTO they will pay a second special dividend!
The simple return is 5.88% and the annualised return is 107.35% being 365/20 x 5.88%
AMC will still have around 5m pounds of cash as free the payment of the 1.80p special dividend
AGE
If you have shares in a non ISA account then you would have to sell them and then buy back them via an ISA but the shortest settlement period is T plus 2.
The nearer we get to the payment of the special dividend the riskier it gets as an RNS could come out either this Wednesday the 24 May 2023 or Thursday 1 June 2023 and the ex div dates and record dates would be 1 June 2023 and 2 June 2023 for the announcement on the 24 May 2023 and 8 June 2023 and 9 June 2023 for an announcement on the 1 June 2023.
If the Board keep to their word and pay it within 90 days of receipt of the 35m USD then the last day to pay it is 12 June 2023 so with an XD date of 8 June 2023 and record date of
9 June 2023 it leaves very little time to identify the shareholders who are entitled to receive the special dividend and then arrange payment!
AGE
Hello Astar
I guess, it all depends on whether one has used up the ISA allowance for the previous and current years, also, one strategy would be to use the ISA for shares that pay out dividends yearly.
You can only put £20k into a Stocks and shares ISA, won't touch the sides for some here.
..... All people need to do is open an Share ISA and you will have nothing to worry about in terms of tax....
Simples!!!!
SCE2AUX
Correct, the only thing you need to worry about is, will you ever get paid !!
I would have thought that since there is such a grey area here that the simplest way forward would be 50% treated return of capital...and 49% as return of dividend income and let HMRC argue the law tax cases and domicility if they wish....
the other 1% I'll accept as a fee for my advice...lol
I am keen to hear what advice the Board have received from a tax Barrister as to whether the special dividend is income in the hands of shareholders or whether it is a return of capital.
In the Buckingham v HMRC First Tier Tribunal tax case the judges found that the majority special dividend was a return of capital and a minor part was income on the hands of Mr Buckingham.
The distinguishing features of the Buckingham case was that the Company that paid the special dividend had sufficient distributable reserves to be able to the minor part of the dividend but not all if it.
In AMC’s case it does not have any distributable reserves to pay the dividend out of.
It is important that should AMC shareholders decide the special dividend is a return of capital that they include this information in the white box of their tax return for 2023/2024.
By doing this you have brought it to HMRC’s attention and so they will then open an enquiry into your tax return.
You can see in the Buckingham tax case that one tax specialist was of the opinion that the majority of the dividend was a return of capital and the minor part was income in the hands of shareholders but this was reviewed by another tax specialist that all of the dividend was income n the hands of shareholders
The judges found in favour of the tax payer as the majority was a return of capital and a minor part was income in the hands of shareholders.
AGE
Gwm121 and Geng are both incorrect for stating that the special dividend is a return of capital because AMC have sold an asset and are returning part of the proceeds to shareholders via a special dividend.
If you look at page 12 & 13 of a document called the Law Committee consultation paper : Capital and Income in trusts you will see a tax case called Hill v Permanent Trustee Company of New South Wales.
In the Hill case a corporate trustee held shares in a pastoral company. The pastoral company sold almost all of its land, livestock and other assets.
The Supreme Court held that the dividend should be treated as capital capital of the trust.
On appeal the Privy Council reversed the decision and held that the dividend should be treated as income of the trust estate.
Whether a Company makes a trading profit or a capital gain from the disposal of an asset then when it distributes the profit or capital gain via a dividend or special dividend then it is to be treated as income in the hands of shareholders if it has sufficient distributable reserves to pay the dividend out of.
However, a U.K. Company is only allowed to pay a dividend if it has sufficient distributable reserves to be able to do so in other words the balance sheet shows sufficient accumulated profits to be able to pay the dividend out of.
AMC is a BVI Company so it is allowed to pay the special dividend as long as it meets the BVI solvency tests.
It is my view the special dividend is a return of capital but for a completely different reason than the reasoning that Geng has used.
The Hill tax case demonstrates the principle that what is a capital profit in the hands of a company does not make a payment of a dividend a capital repayment it is still income in the hands of shareholders.
The distinguishing feature in AMC’s case is that it does not have sufficient distributable retained profits from an English Law perspective to be able to pay the dividend but it does from a BVI Law perspective.
If you look at AMC’s last week interim accounts balance sheet you will see that the net assets are less than the total of the share capital and the reason for this is that AMC have made losses in every financial year since it was listed on the AIM market.
As the total of the share capital and reserves are less than the total share capital then the special dividend is being paid out of share capital.
When determining the distributable reserves from an English Law perspective it is necessary to look at AMC’s individual company balance sheet and not the AMC Group balance sheet which is shown in each years annual accounts.
There will not be much difference between the accumulated losses of AMC and the Group and the accumulated losses of AMC will be less than that of the AMC Group.
AGE