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(Alliance News) - Rockpool Acquisitions PLC said Monday it has been searching for additional avenues of financing after its US backer indicated it will be unable to progress its investment for some time.
In mid-October, Rockpool agreed heads of terms with a US investor over a GBP1.6 million subscription, of which GBP750,000 would be loaned to Greenview for working capital purposes.
However, on Monday, Rockpool said the investor - while still interested - is delaying the investment due to the Covid-19 outbreak.
"The investor has also indicated that they have some issues with the proposed structure and it is not clear to the board of the company as to whether the solutions proposed by them in that regard will be sufficient to overcome those issues."
As a result, Rockpool said it has been exploring potential alternative sources of funding in order to enable the company to meet its own short and medium-term cash requirements. Rockpool also said the funding will put it in a position to make further loans to Greenview Gas Ltd and its subsidiaries, so that Greenview can meet its requirements for additional funding.
"The existing main lender to Greenview Group has indicated that it is not willing to make additional loan facilities available to it, but that it might extend the availability of its existing facilities if Greenview can raise certain further sums by way of equity or subordinated loans," Rockpool said.
The company said it has received a conditional offer of funding, which will allow it to to meet its short-term requirements for finance and cover the cost of allowing the suspension of the company's shares to be lifted.
Rockpool is hoping to raise about GBP2 million.
"These funds would be used to meet Greenview's requirements for additional funding and also to meet the expected costs of preparing a prospectus to facilitate completion of the acquisition of Greenview by the company. Those discussions were in the most part positive, but further in-depth discussions are required and, particularly in light of the current economic and business uncertainties caused by Covid-19, there can be no certainty that any such discussions will lead to investments being made," Rockpool said.
By Paul McGowan; paulmcgowan@alliancenews.com
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