LONDON (Alliance News) - Global Brands SA Wednesday reiterated that it expects to raise further funds in the second-half of 2014 in order to secure additional capital to pursue investments.
The company's plan to acquire, under a reverse takeover, UK Onshore Gas Ltd, a private limited company owned by Global Brands' majority shareholder, Gerwyn Williams, and his associates, fell through in July of this year. It had secured a convertible loan facility for up to GBP300,000 from Williams in order to cover the initial due diligence and other costs directly associated with the acquisition, as well as for working capital purposes. However, in the wake of the termination of the negotiations to buy UK Onshore Gas, the company said the terms of the convertible loan facility had been modified.
Instead of using the loan to cover the due diligence and other costs associated with the acquisition, Global Brands said it would use it for working capital and investment purposes. While Global Brands had drawn down GBP80,000 of the loan by June 30, it has now drawn down GBP300,000.
The Global Brands' reiteration of the expected fundraising came alongside interim results showing that the company made a GBP96,598 pretax loss in the six months ended June 30, compared with a GBP120,376 pretax loss in the corresponding period last year. Administrative expenses fell to GBP79,158 from GBP99,246.
Global Brands reported GBP2,618 of net income. Staff costs were flat at GBP18,000, made up solely of directors' fees.
Global Brands shares were Wednesday untraded at 0.215 pence.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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