After trading for just a few days, Cambria Africa has asked that its shares be suspended again “pending clarification of a dispute in relation to a material agreement”.
We will have to wait to see what this means.
UPDATE 30 September 2015
The dispute relates to the secured loan agreements held with Consilium Corporate Recovery Master Fund Ltd (“CCRMF”). The dispute arises over loans provided to the Company by CCRMF and the validity of CCRMF’s attempt to accelerate the repayment of the loans as a result of an alleged change of control on 13 April 2015. On 13 April 2015, Cambria shareholders approved the subscription by Ventures Africa Limited (“VAL”) of 107,000,000 ordinary shares in the Company which resulted in VAL owning 50.55% of Cambria. CCRMF and related parties hold 14.9% of Cambria Africa’s shares.
Cambria, upon taking advice, strongly disputes CCRMF’s claims and maintains that the due date of the loans as disclosed in its audited financial statements and as defined in the loan agreements, as amended, is 30 April 2016.
The Company is engaged with CCRMF to arrive at a mutually agreeable resolution. Nevertheless, Cambria reserves its rights to proceed ith legal remedies as appropriate.
In the Company’s announcement of 7 September 2015 it stated it expected to have sufficient working capital until April 2016 when these debt obligations of $5.1m become due and was confident it would be able to refinance or raise additional finance by that date. In the event that CCRMF’s claim is upheld, the Company would need to raise further funds prior to that timeframe in order to meet an accelerated repayment of the loans.
There can be no certainty there will be a mutually agreeable resolution or further funds raised. The Company will provide a further update in due course.
Update 1 October 2015
Trading has been restored
CMB : Cambria Africa suspends shares again