Cardinal Resources plc

3 Nov 2006 10:49

QVT Financial LLP03 November 2006 Cardinal Resources plc Miscellaneous Europa Partners Limited 3 November 2006 NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN, INTO OR FROM AUSTRALIA, CANADA,JAPAN OR THE UNITED STATES QVT Financial LLP appointment of Europa Partners Limited in relation to shareholding QVT Financial LLP ("QVT"), the London based investment advisor, has appointedinvestment bank Europa Partners Limited ("Europa Partners") in relation to QVT'sinterests in Cardinal Resources plc ("Cardinal Resources"). QVT has instructed Europa Partners to pursue the implementation of possiblestrategies for improving the value for its shareholding in Cardinal Resourceswhich it does not believe is reflected in the current share price. This mayinclude an outright sale of QVT's shareholding. QVT Fund LP, a fund advised byQVT, currently owns 18,545,000 Ordinary Shares of Cardinal Resources,representing 16.18 % of the outstanding equity. Commenting on this development, a spokesman for QVT said, "Cardinal Resourcesfloated on AIM in April 2005 at a price of 32p. At last night's close, theshares stood at 11p. The latest calculations of net asset value per share are45p, a reflection of the rise in energy prices over the last two years. YetCardinal Resources' share-price has languished. We believe this to be dueprimarily to inappropriate financing structures and bloated central costs." The spokesman added, "We have tried to engage management in a constructivedialogue and in particular to obtain full information on the recent financingstructure put in place with Silver Point Finance, but have not succeeded. Wehave therefore appointed investment bankers to examine other alternatives." QVT has advised Europa Partners that it intends to continue to be able to tradein the securities of Cardinal Resources and not to become a party to informationthe possession of which would mean it would be unable to trade freely. Enquiries:- Europa Partners Limited: David von Simson 020 7661 8158 Notes for Editors: Cardinal Resources plc is an independent oil and gas company engaged in theacquisition, development, production and exploration of oil and natural gasproperties in Ukraine. It floated on AIM in April 2005. In December 2005, the Company, through a financing subsidiary, arrangedfinancing facilities with Silver Point Finance, at a cost of 15% p.a (going upto 20%). The finance subsidiary issued warrants to Silver Point Financepotentially exercisable and exchangeable for warrants over approximately 30% ofthe Company's shares, on a fully diluted basis. QVT Financial LLP is a FSA regulated investment management company establishedto manage the European assets of QVT Fund LLP. Europa Partners Limited is an independent London based investment bank. As wellas providing advisory services to corporate clients it has a growing practice asan adviser to hedge funds and proprietary trading desks in relation to specificinvestments. This information is provided by RNS The company news service from the London Stock Exchange