Full message from Brett3 Aug 2017 10:28
Thank you for your note.
We are very disappointed with the failure of Allan Lam and his Axel consortium to deliver the financing in good time, the planned process for resisting was dependant on this. Axel is a well credentialed counter-party with Clifford Chance acting for them and all the checks and verifications completed. We were not aware that there was a risk of exchange control delay and without the funds coming into the ESCROW account as expected, we were unable to get an extension from the AIM team.
The plan remains to complete the transaction and relist as an IPO, not an RTO, but with the same deal.
The timing is impacted now by the summer hiatus and the brokers have advised that we should wait until the second half of September to revisit the capital raise.
The deal with Axel was for a larger sum than we required and was sized to give them a desired 25% position fully diluted. We will look to raise a smaller amount with less dilution in September and continue as planned.
In the interim there is funding in the bank to continue the technical work on the gold projects. We have had progress with the licensing in Czech Republic and have progress on those fronts.
There are a few investors asking the same questions, so I am copying this message to a number of your fellow shareholders. I am also working with the Consolidated team who lead the original RTO to see what support they can lend to the Company in terms of accelerating to a new listing.
My focus now is to keep the team motivated and work as quickly as we can on recovering the transaction and the listing ASAP.
Please do keep in contact. I know that no communication is the worst possible outcome and we want to keep you praised of what we are doing to get back to market and build value.
Regards
Brett