SeaEnergy has said it is taking advice from insolvency practitioners as it runs out of time to secure a cash lifeline from a disposal.
The Aberdeen-based successor to the Ramco business, whose shares have crashed by almost 90per cent in 12 months, said it has been in detailed discussions with a number of potential purchasers for its R2S software and services subsidiary. But the disposal would be classified as a fundamental change of business under the AIM-listing rules, requiring approval at a special meeting of shareholders.
On March 4 SeaEnergy said it was expected to need additional funding to trade beyond May and yesterday the company said it had “sufficient funds to remain trading until the second half of May”.
The statement went on: “The directors are of the opinion that it is now unlikely that a sale and purchase agreement can be agreed and executed in sufficient time to allow the process of shareholder approval to occur while the company remains solvent.
“In addition, the suspension in trading of the shares of Lansdowne Oil & Gas, a company in which SeaEnergy holds an 18.67per cent interest, on 13 April means that it is unlikely that the company could currently raise funds through the disposal of its interest. The directors are therefore taking advice from insolvency practitioners.” The shares, 22p a year ago and 41p in April 2014, were suspended at 2.38p.
SeaEnergy had warned in March that a £1m 12-month working capital package agreed last November might only last six months, because a number of projects had been deferred into later in 2016 or beyond, due to a further deterioration of trading conditions. Despite significant cost reductions, it was generating losses at current activity levels.
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