LONDON (Alliance News) - Landscape Acquisition Holdings Ltd on Wednesday posted a significant loss for its first financial year since listing due a charge associated with its founder preferred shares and warrants.
The company's loss for the year was USD56.6 million, hit by a USD55.9 million non-cash charge relating to founder preferred share dividend rights. There was also a smaller USD484,250 non-cash charge relating to its warrant redemption liability.
Landscape completed its initial public offering in November 2017 and raised USD500 million, consisting of USD484 million through a share placing with match warrants at a placing price of USD10.00 per share. Added to this was a USD16 million subscription of 1.6 million preferred shares, also at USD10.00 each.
Investment income was USD7.3 million, coupled with other income of USD253,532 but this was overshadowed by these sizeable charges.
In addition, Landscape Acquisitions incurred USD7.8 million of expenses.
The company was created in order to acquire "a target company or business" of no expected value. Any funds not used in the acquisition are to be used in future acquisitions.
"Following completion of the acquisition, the objective of the company is expected to be to operate the acquired business and implement an operating strategy with a view to generating value for shareholders through operational improvements as well as potentially through additional complementary acquisitions following the acquisition," said Landscape Acquisitions.
"The board of directors continues to review a number of acquisition targets and will remain disciplined in only proceeding with an acquisition that it believes can produce attractive returns to the company's shareholders," the firm added.
Landscape Acquisition shares closed untraded at USD8.82 on Wednesday.