Business
Posting of Circular
Posting of Circular.
About this update from Rockhopper Exploration Plc
[{"type":"text","content":"\n \nRNS Number : 5345D Rockhopper Exploration plc 30 April 2013 \n\n30 April 2013\nROCKHOPPER EXPLORATION PLC\n(\"ROCKHOPPER\" OR THE \"COMPANY\")\nPOSTING OF CIRCULAR AND NOTICE OF GENERAL MEETING\nPROPOSED CANCELLATION OF THE SHARE PREMIUM ACCOUNT AND AUTHORITY FOR THE COMPANY TO PURCHASE ITS OWN SHARES\n \nFurther to the announcement of 27 March 2013, the Company is pleased to confirm that it is today posting a Circular to Shareholders. The purpose of the Circular is to seek the approval of Shareholders at a General Meeting to be held on 4 June 2013, for the Company to cancel its Share Premium Account and for the Directors to be given the authority for the Company to purchase its own Ordinary Shares.\nCancellation of Share Premium Account\nThe Directors believe it to be important that the Company has the flexibility to pay dividends to Shareholders and to make purchases of its own shares where to do so would benefit the Company. However, as at 31 March 2013, the Company had, on the basis of its unaudited management accounts, retained losses of US$29,370,466 and is therefore prohibited from paying dividends or purchasing its own shares. The proposed cancellation of the Share Premium Account is expected to create distributable reserves of US$549,383,668 if the cancellation is approved by the Court. These distributable reserves would then be available (subject to the approval of the Court), for any corporate purposes which the Directors may consider appropriate including the funding of dividends and to facilitate any buy-back of the Company's own ordinary shares. In order to approve the proposed cancellation, the Court will need to be satisfied that the interests of the Company's creditors will not be prejudiced as a result of the cancellation.\nAuthority for the Company to purchase its own Ordinary Shares\nIn addition to the proposal to cancel the Company's Share Premium Account, a resolution is being proposed at the General Meeting which will, if passed and provided that the Court approves the cancellation of the Company's Share Premium Account and the distributable reserve arising is available to be distributed, allow the Company to make purchases of its own Ordinary Shares in the market on such terms and in such manner as the Directors may determine.\nHowever, in accordance with IPC Guidelines t...