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(Sharecast News) - Onshore energy and natural resources company Ascent Resources updated the market on Friday following an investor feedback event.
The AIM-traded firm said it was initiating a process to distribute an entitlement to the economic interest in 49% of any net proceeds received from a successful claim against the Republic of Slovenia by the company and its subsidiary, Ascent Slovenia.
It said the objective behind the potential distribution was to provide qualifying stakeholders with the opportunity to access a significant portion of the net proceeds resulting from a successful claim.
The distribution would be ring-fenced and insulated from company capital structure changes.
However, it said it was exercising caution as the actual amount received by the company in the event of a successful claim could be substantially lower than the whole claim.
The firm said it would establish a new 100%-owned special purpose vehicle (SPV) subsidiary to facilitate the process.
It said it expected to enter into a deed of transfer with the SPV, transferring 49% of the net proceeds that could be received from a successful claim outcome under the Energy Charter Treaty (ECT).
Following the SPV's receipt of tax clearance from HMRC, the company would convene a general meeting, where the board would seek shareholder approval for a bonus issue of new preference shares or another suitable distribution mechanism.
The distributions would be designed for qualifying shareholders who would be identified on a specified record date, which was yet to be determined but was likely to coincide with the general meeting expected to occur in January.
The company would distribute the allocated portion to special preference shareholders using the relevant mechanism on the final determination of the claimants' net proceeds resulting from any successful ECT claim.
"The company is finalising tax and legal advice and will make further announcements as appropriate," the board said in its statement.
At 1125 GMT, shares in Ascent Resources were down 0.49% at 4.03p.
Reporting by Josh White for Sharecast.com.
