LONDON (Alliance News) - Nova Resources Ltd had its shares suspended from trading on AIM Friday, when it said its nominated adviser and sole non-executive director have both resigned, adding the company will face "financial difficulties" if it cannot secure funds soon.
Nova had GBP28,000 in cash at the end of June 2015 and has not raised any funds since. The company's nominated adviser, SPARK Advisory Partners Ltd, has resigned and is the sole reason for the share suspension. Nova did not state any reason for the adviser's resignation.
The company's only Non-Executive Director, Ajay Rajpal, has also resigned with immediate effect, leaving Chairman Chris Morgan as the company's only board member.
Adding to its woes, Nova said its current investments are progressing slower than what was anticipated and admitted that it must secure funding soon.
"Progress with the current investments in Enerstry Group Ltd and Tricor PLC has been slower than anticipated, and the company has been seeking new funding for working capital, to enable it to continue with the ongoing management of these investments, and also to seek new investments," said Nova.
Tricor is also listed in London and is an investment company focused on the natural resources sector.
Nova said discussions about funding have been held, but no agreement has been struck yet. Nova conceded there is no guarantee that funding will be secured, but reiterated its aim to get some funds through the door "as soon as possible."
Also impacting its cash position are delays in receiving the remaining loan repayments it is owed from Enerstry, but Nova said it is continuing to pursue those funds.
"In the meantime, the company has limited cash resources available, and will continue to progress the discussions on the new funding, as well as work with Enerstry to collect the remaining loan repayments," said Nova.
"If new funding is not secured, then the company will experience financial difficulties, and face an uncertain future," the company added.
Nova's last financial results were released back in September and covered the first half of 2015, revealing the company's pretax loss narrowed to GBP176,000 from GBP2.9 million a year earlier.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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