Business
Response to QVT Announcement
Response to QVT Announcement.
About this update from Cloudbreak Discovery Plc
[{"type":"text","content":"\n Cardinal Resources plc\n27 November 2006\n\nCARDINAL RESOURCES PLC\nRESPONSE TO QVT ANNOUNCEMENT\n\nLONDON - Monday, 27th November 2006\n\nCardinal Resources plc (AIM:CDL) ('Cardinal' or 'the Company'), an independent\noil and gas production and exploration company operating in Ukraine, notes with\ndisappointment the announcement made by QVT Financial LLP ('QVT') earlier today.\n\nKey points\n\n• Cardinal respects the views of shareholders and has sought a further\n meeting with QVT; which has been refused. It is disappointing that QVT has\n instead chosen to conduct a campaign of misinformation via the press.\n\n• QVT bought Cardinal shares in full knowledge of the existing Payment\n in Kind Notes with Warrants financing ('PIK Notes') which was announced in\n December 2005.\n\n• Cardinal seeks to put the record straight in terms of the alternative \n sources of finance that have been considered, the history of opportunities \n such as the Rudis developments and RC re-instatement and how Cardinal has \n been and would like to remain fully funded.\n\n• Cardinal has explored a variety of financing options including the \n possibility of further PIK Notes or alternatives such as a rights issue. No\n proposal has been received from QVT to date.\n\n• QVT are invited to meet Cardinal at the earliest opportunity to engage in a \n more constructive dialogue.\n\nBackground\n\nThe Board takes shareholders' views seriously. Cardinal makes regular\nannouncements to the market to update shareholders and, since IPO in April 2005,\nhas had an active programme of meetings with existing and potential shareholders\non the basis of this public information.\n\nQVT first notified Cardinal (in the name Deutsche Bank AG and subsidiary\ncompanies) on 23 January 2006 that it had become a Cardinal shareholder and this\nwas announced by Cardinal on 25 January 2006. QVT's share purchase followed\nannouncement of the Silver Point financing in December 2005 (which financing\nterms QVT now seeks to criticise). Cardinal last met with QVT in August 2006\nand has been in contact with QVT via its advisers, as recently as last Friday 24\nNovember 2006, to request a meeting tomorrow in New York. It is disappointing\nthat QVT has refused to meet and has instead chosen to conduct a campaign of\nmisinformation via the press.\n\nCardinal was floated on AIM...