(Alliance News) - Thalassa Holdings Ltd on Monday said it has disposed of its holding in Corridor Resources Inc, recording a gain on its investment.
The company made a gain of around USD724,000 on its investment of USD965,000, reflecting a profit of 75%.
Thalassa first invested in Corridor, now known as Headwater Exploration Inc, in May 2019 but decided to sell its holding when in January, Corridor announced a reorganisation transaction and the appointment of a new management team.
"Whilst clearly pleased by the uplift in the share price during our investment period, we were unhappy with the terms of the reorganisation transaction, which allowed new management and their backers to purchase shares in CDH at a 30% discount to CDH's book value, said Thalassa Chair Duncan Soukup.
"These terms were not offered to pre-existing CDH shareholders. As we were unable to acquire a significant stake in what was clearly a massively mispriced asset, the decision was taken to divest the position," he added.
Shares in the holding company were untraded at midday Monday in London, last quoted at 62.50 pence each.
By Ife Taiwo; ifetaiwo@alliancenews.com
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Thalassa (di) (THAL)