(Alliance News) - Illa Spa has communicated some important updates regarding the negotiated settlement proceedings to which the company has been subject since last December 1 and which quantifies the need for EUR11.5 million in financial resources. This amount, according to the negotiated settlement, is to come from the cash generated by the subsidiary Aeternum and, for the prevailing share, from the injection of new finance by Negma Group Investment Ltd, through its affiliate Global Growth Holding Limited, which has become the assignee of the contracts originally entered into with Negma.

However, the company reports that despite repeated requests, "Negma/GGHL have not yet made the payment of EUR1 million, nor disbursed the amount of EUR500,000 related to the tranche of the convertible bond under the Investment Agreement dated January 5, 2023, citing insufficient disclosure of the company's situation and the failure of certain negotiating assumptions. These contentions were found to be unfounded by the company, which proceeded to reject and counter Negma/GGHL's allegations."

Negma/GGHL, in fact, had committed to disburse up to EUR11.5 million to the company over the next four years under the Investment Agreement concerning the convertible bond cum warrant, signed on January 5, 2023, as well as the side letter signed on October 30, 2023, the latter of which provided for the disbursement of additional financial resources of EUR1 million upon obtaining an authorization from the competent court to contract prededuction financing.

"For the purposes of the execution of the plan and therefore the success of the negotiated settlement," Illa continued, "it is absolutely essential that Negma/GGHL follow up on the contractual commitments signed at the time and confirmed to the Expert during a meeting held on March 27, 2024, including in particular those undertaken with the side letter providing for the immediate disbursement of EUR1 million of repayable finance in prededuction.

"Should this default on the part of Negma/GGHL persist," the company concludes in the statement, "with which the latest interlocutions are still underway in an attempt to quickly obtain the payment of the total amount of EUR1.5 million, the company can only take note of the failure of this important financial pillar in support of the negotiated settlement underway, resolving the immediate abandonment of the plan due to its unfeasibility.

Illa closed Friday flat at EUR0.00010 per share.

By Chiara Bruschi, Alliance News reporter

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