RE: Share Consolidation - Discussion26 Apr 2022 12:28
As previously announced, Keras had been looking to resolve the funding shortfall at Falcon Isle and engaged local US legal representatives to enforce its rights of the terms of the transaction agreed in June 2020, under which Keras secured a 51% stake in Falcon Isle effective 29 December 2020. Further to these discussions, agreement has been reached whereby Keras has purchased the outstanding 49% equity interest in Falcon Isle for a total consideration of US$3.2m including loans repaid to the vendor of Falcon Isle of US$1,816,527. To preserve cashflow for developing the project, this will be paid in four annual instalments of US$800,000 commencing on 1 July 2022 with the final payment on 1 July 2025. Importantly, concluding this agreement has ensured that the Company avoids a lengthy and costly litigation process in the United States and allows Falcon Isle to recommence operations to meet demand in the key spring season.