LEED RESOURCES PLC RNS Number : 6594S Leed Resources PLC 21 March 2016
Leed Resources plc, (AIM: LDP), the natural resource investing company, announces that it has remitted A$250,000 to support the working capital of High Mannor ("HM"), a company controlled by Battalion International Limited ("Battalion"). Leed announced on 15 February 2016 that it had entered into a non-binding heads of terms agreement, which included an option to acquire up to 100% of Battalion. The loan will be secured against trade receivables and stock held at the quarrying and processing site of HM.
HM has previously relied on alternative sources of working capital finance to fund the gap between production and payment for the blocks and panels. These sources of financing have now expired and accordingly, Leed along with two other Battalion loan note holders, have agreed to provide this short term working capital facility, which will accrue interest at a rate of 12% per annum.
During the course of our ongoing due diligence on HM, it has recently been discovered that one senior member of HM staff has been carrying out fraudulent activities which appear to have significantly affected the profitability of HM's business over the past few months. The management of HM are seeking to quantify the quantum of the loss to the business and the individual concerned has now been dismissed and the facts reported to the police in Perth. Leed is in active discussions with the remaining HM management to ensure stronger controls moving forward and to assess the impact of these events on the current business of HM.
Leed is continuing with due diligence in connection with the potential acquisition of Battalion and HM.
Further updates will be made as necessary.
For further information, please contact: Leed Resources plc | |
Ian Gibbs | |
Charles Zorab | Tel: +44 203 405 4214 |
Nomad and Broker | |
SP Angel Corporate Finance LLP | |
Ewan Leggat/Laura Harrison | Tel: +44 20 3470 0470 |
This information is provided by RNS
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Leed Resources plc issued this content on 21 March 2016 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 21 March 2016 10:07:44 UTC
Original Document: http://www.leedresourcesplc.com/announcements/21032016 Investment in High Mannor.pdf
