LONDON (Alliance News) - REACT Energy PLC said Friday that it will not be issuing its interim results for the six months to end-December until "clarity is achieved" on its financial position, as it is unable to conclude on its going concern position at this time.
The company is continuing discussions with potential funding providers so that it will be able to lift the suspension of trading in its AIM-listed shares.
In December 2013 the company signed a collaboration deal with the Foresight Group for the part financing of the 12 megawatt Enfield Biomass Project, under which a number of co-investors were required to finance the project alongside Foresight.
In June 2014 the company said it was in detailed discussions with potential co-investors regarding Enfield, and continued discussions throughout the remainder of the year, eventually signing non-binding heads of agreement with an investor. This led it to negotiations with Foresight in relation to the terms of the New Enfield lease agreement. However, it has been unable to reach a "satisfactory conclusion" to these negotiations, which led to uncertainty on the potential investment.
It has continued to explore its funding options since then.
Last Friday REACT said its Newry Biomass Ltd joint venture has approved the issue of loan notes to Farmer Business Developments PLC, REACT's joint venture partner and majority shareholder. At that time it said the proceeds would be used to repay in full borrowings owed by Newry Biomass to Ulster Bank Ltd, amounting to GBP5.4 million.
Shares in the company remain suspended.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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