Part on RNS from 9th of June16 Jun 2023 12:47
1. Introduction
Included with this letter is the notice convening a General Meeting of the Company to grant the Directors authority to issue new equity share capital up to specified limits, and to disapply statutory pre-emption rights. The purpose of this letter is to explain the reason for the proposals in order to provide Shareholders with the relevant information in order for them to support the proposals should they so wish.
The areas where the Directors are seeking authority to issue new equity shares for cash are set out below and comprise:
a) To ensure sufficient levels of working capital are maintained to meet the Company’s corporate obligations.
In addition to normal working capital requirements, the Company needs to ensure that it is able to meet obligations in relation to the Asset Backed Debt facility from A&T Investments SARL (“Alpha”) as announced on 16 May 2022 and the debt owed to Mercuria Energy Trading SA (“Mercuria”) relating to Tranche A of the Prepayment Agreement announced on 21 March 2018 which currently amount in aggregate to some $8.4 million. Under the extension documentation referred to in the Company’s announcement of 15 May 2023 obligations in relation to Alpha and to Mercuria are expected to fall due on 30 June 2023.
Despite our continuing efforts and the High Court Judgement in our favour, we have not, as at the date of this letter being published, completed the settlement of the historic claims. This remains our expectation, but as time moves on we need to plan accordingly.
Therefore, additional headroom is being requested to ensure that in the event that the realisation of the Company’s historic claims – referred to in the Company’s announcement of 15 May 2023 – is not achieved prior to 30 June 2023, or such later date as may be agreed with Alpha and Mercuria, the Company can demonstrate that it has an alternative method of meeting its obligations thereto as well as meet its ongoing corporate and other costs.
b) To seek authority to issue the remaining SARS as announced on 24 April 2023.
It should be noted that there is no commitment at this time to issue any of the new equity share capital for which authority is sought under paragraph a) above. The new equity share capital for which authority is sought in order to demonstrate the ability to repay Alpha and Mercuria will only be issued in the event that the obligations to Alpha and Mercuria cannot be met out of the realisation of the historic claims referred to above. In the event that the claims are not realised before 30 June 2023 the Company will endeavour to negotiate a short extension for the repayment.
Has any thing changed since then,
link below
https://www.londonstockexchange.com/news-article/VAST/notice-of-general-meeting/15992673
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