(Alliance News) - Keras Resources PLC on Wednesday said some shareholders have been given "erroneous" information by a UK broker over its Calidus Resources Ltd share distribution.
Keras intends to distribute all 723.8 million of its Calidus shares, which account for a 34% stake in the Australian-listed gold explorer. Based on the most recent closing price of the shares, the stake was worth around GBP11 million.
According to Keras, "certain shareholders" were given "advice by a London based private client broking firm" regarding the Calidus distribution which Keras "believes to be erroneous". The name of the broker was not disclosed.
Keras reiterated that Calidus is currently admitted to the ASX, operated by Australian Securities Exchange Ltd, and its shares will not be admitted to trading on the London Stock Exchange's AIM market.
Keras also stated the resolutions proposed for its October 14 general meeting to approve the distribution are special resolutions, meaning they will require at least a 75% majority of votes to pass.
Keras said based on the mid-market closing price on the ASX, its Calidus shares were worth GBP11.0 million on September 25, more than Keras's entire GBP10.5 million market cap in London at that time.
As such, Keras reiterated its belief "the total value for shareholders will be materially increased by shareholders holding a separate interest in ordinary shares of Keras and a separate interest in Calidus shares".
Shares in Keras were up marginally at 0.40 pence in London late on Wednesday morning.
By Anna Farley; annafarley@alliancenews.com
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Keras Res (KRS)