Business
Preliminary Results
Preliminary Results.
About this update from Cloudbreak Discovery Plc
[{"type":"text","content":"\n Cardinal Resources plc\n02 July 2007\n\n\n CARDINAL RESOURCES PLC ANNOUNCES\n PRELIMINARY RESULTS FOR THE YEAR ENDED 31 DECEMBER 2006\n MEASURES TO FUND WORKING CAPITAL REQUIREMENTS\n COMPLETION OF THE GAS GATHERING AND SEPARATION FACILITY\n\n LONDON - Saturday, 30 June 2007 \n\n Cardinal Resources plc (AIM:CDL) ('Cardinal' or 'the Company'), an\n independent oil and gas exploration and production company, today\n announces preliminary results for the year ended 31 December 2006;\n measures to fund it's working capital requirements for the forthcoming\n year and completion of the gas gathering and separation facility.\n\n Hares Group Holdings GmbH ('Hares Holdings'), the parent company of Hares\n Group Ltd ('Hares Group'), has today signed a commitment letter (the\n 'Hares Commitment Letter') to fund the working capital requirements of\n Cardinal in case of any shortfall over the period ending 1 July 2008 (the\n 'Commitment Period'). Any amounts funded will, subject to any required\n shareholder and other approvals first being obtained, be satisfied by\n issuing equity at the closing of an equity offering contemplated in 2007,\n or failing that in cash in equal six monthly installments commencing on 1\n February 2009 The maximum number of Cardinal ordinary shares which may be\n issued to Hares Holding in satisfaction of the commitment is capped so\n that any shares issued would not at any time require Hares Holding to make\n a mandatory offer for the remaining Cardinal shares pursuant to Rule 9 of\n the City Code on Takeovers and Mergers.\n\n Hares Group is presently a 19.2% shareholder in Cardinal. Hares Group\n first became a significant shareholder when Cardinal completed the\n acquisition of Rudis Drilling Company from Hares Group on 27 October 2005.\n Misbah Al Droubi, Chief Executive of the Hares Group, has been Director of\n Cardinal since that date.\n\n Silver Point Capital and Cardinal are in discussions to restructure the\n bridge PIK notes first issued on 23 December 2005.\n\n BACKGROUND TO THE REQUIREMENT FOR ADDITIONAL WORKING CAPITAL\n\n A potential shortfall in working capital in the forthcoming year arises as\n follows:\n\n 1. JAA gas sales.\n\n A cash flow shortfall of approximately $360,000(1) per month arising from\n the build up of stock for future sale was announced by Cardinal on 8 May\n 2007 together wi...