Karoo Energy Plc - AIM Update, General Meeting and Suspension
PR Newswire
London, March 17
18 March 2019
Karoo Energy plc
("Karoo Energy" or the "Company")
AIM UPDATE, GENERAL MEETING AND SUSPENSION
Karoo Energy is updating shareholders on its proposed fundraising and its intended move to AIM.
The Company believed that it had secured conditional funding, sufficient in its view, for its intended AIM admission. The Directors proposed to seek authority from Shareholders, under the Companies Act 2006, at the General Meeting to be held today, 18 March 2019 to, inter alia, enable it to issue shares to the placees upon admission to AIM, as announced on 1 March 2019.
The Company's engaged Nominated Adviser, pursuant to admission to AIM, has now informed that the Company is unable to be proposed as suitable for an AIM listing. This is disappointing and frustrating given the conditional fundraise and the substantial work undertaken by the Company and its advisers, including the preparation and issuance of a full pathfinder admission document. The Company cannot now pursue the proposed move and the conditional AIM fundraising.
The Company is in urgent discussions on a potential restructuring and potential re-financing. There can be no assurance that any refinancing will succeed, and should it fail, the Company will not be able to continue to trade. Accordingly, the Company's shares have been suspended pending financial clarification. The Company has trade creditors in the region of £300,000.
The General Meeting of the Company to be held today, 18 March 2019 at 11.00 a.m., will take place as planned.
The Directors of the Company accept responsibility for the content of this announcement.
ENQUIRIES:
Company
Karoo Energy plc
Noel Lyons
Telephone: 020 3130 0674
Corporate Adviser
Peterhouse Capital Limited
Guy Miller / Mark Anwyl
Telephone: 020 7220 9795
