Business
Financial Update
Financial Update.
About this update from Nativo Resources Plc
[{"type":"text","content":"\n \nRNS Number : 1953Z Independent Resources PLC 25 May 2016 \n\nFOR IMMEDIATE RELEASE\n25 May 2016\n \nIndependent Resources plc\n(\"IRG\" or the \"Company\") \nAdditional creditor reduction arrangements\nFinancial update\nFollowing its announcement of 10 May, 2016, IRG is pleased to announce that it has made further substantial progress in improving its financial position through reducing its indebtedness by a further £305,000 to approximately £230,000 (unaudited). \nKey points:\n· Settlement of £148,000 of trade creditors through the payment in cash of £28,500 and the issue of 69,428,571 new ordinary shares of 0.01p each in the Company which represents an effective equity conversion price of approximately 0.17p per Share and a premium of 227 per cent to the closing share price of 0.0525p on 24 May 2016;\n\n· A further c.£96,000 debt reduction, through one of the Company's directors (\"Director\") accepting, in principle, payment in Shares for past services, at a price yet to be agreed, but which is intended to be at a significant premium to the Company's pre-announcement share price of 0.0525 pence per Share; \n \n· c. £36,000 reduction in trade creditors through a trade creditor agreeing to accept Shares in payment of this sum at the same price as Shares issued to redeem the Company's £200,000 of convertible unsecured loan notes and any accrued interest thereon, the terms of which were announced to the market on 17 May 2016; \n \n· c. £25,000 reduction in trade creditors through certain creditors agreeing to accept cash payments of £57,000 in settlement of indebtedness with a face value of £82,000; and\n \n· Arrangements have been made with creditors representing a significant portion of the remaining trade creditor balances to defer payment until IRG receives revenues from EGPC in relation to its interests in East Ghazalat which the Company expects to be well in excess of the outstanding creditors. \n \nReduction in creditors\nOn 10 May the Company announced it had secured agreements with a number of its trade creditors to reduce its indebtedness by c.£500,000 to approximately £500,000. On 17 May 2016, the Company announced that it had secured short te...