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Sefton Resources (SER)


Friday 30 January, 2015

Sefton Resources

Issue of Equity and Appointment of Director

RNS Number : 6894D
Sefton Resources Inc
30 January 2015

30 January 2015

Sefton Resources, Inc.

("Sefton" or the "Company")


Subscription for Equity and Proposed Appointment of Director



The board of directors of Sefton (the "Board") is pleased to announce that the Company has raised £80,000 gross through a subscription for new common shares of no par value in the capital of the Company ("Shares").  The new Shares have been subscribed for by a group of 8 individual investors at a price of 0.05 pence per Share (the "Subscription").  A total of 160,000,000 new Shares have been issued today, and an application will be made for the new Shares to be admitted to trading on AIM with effect from 5 February 2015 ("Admission"). The Subscription has been carried out within the Company's existing share authorities.

With the proposed sale of TEG USA (as announced on 16 January 2015) and the current low oil prices, the Company will be in a position where it is generating no operational cashflow.  The Company therefore has a requirement to generate working capital from non-operational sources in the short term in order to meet its ongoing costs and liabilities; this includes the immediate costs of maintaining the Company's AIM quotation, with the monies raised principally being used to pay accrued liabilities related to this.  The Board, in consultation with Allenby Capital Limited, its Nominated Adviser, has concluded that the Subscription provides the best opportunity to achieve this in the short term while the security agreement with the Bank of the West (the "Bank") remains in place, which currently provides that the proceeds of any asset sales be applied to reduce the outstanding balance of the loan from the Bank.  The Subscription was the only option that the Company has been able to locate that provided the working capital required to meet its immediate liabilities.  Accordingly, based on these factors and the intention and prospective capabilities of the new investor group to execute a turnaround business plan for the Company, the Board has determined that the Subscription is in the best interests of the Company and its shareholders.    

As part of the Subscription, Mr Jim Mellon has subscribed for 32,100,000 Shares, and now holds 32,100,000 Shares, equivalent to 3.00% of the common voting share capital of the Company as enlarged by the Subscription.

Following the Subscription, the Company will have a total of 1,069,644,495 Shares in issue (the "Enlarged Share Capital"). The new Shares issued pursuant to the Subscription represent 14.95% of the Enlarged Share Capital.

The Subscription is the first element of a plan to turnaround Sefton now that the refinancing has been agreed with Hawker Energy Inc. and the Bank (an announced on 16 January 2015). 

Daniel Levi (who subscribed for 21,650,000 new Shares in the Subscription and has a total holding of 21,650,001 Shares, equivalent to 2.02% of the Enlarged Share Capital) will join the Board as an Executive Director with effect from 3 February 2015.  This is expected to be an interim role, with Mr Levi leading efforts to identify a new strategy for the Company, recruit a new team to implement this strategy and work on the next stage of the turnaround of the Company. 


Visit or contact:

Keith Morris, Director

Tel: 0207 448 5111


Nick Harriss, Nick Athanas, Allenby Capital (Nomad)

Tel: 0203 328 5656

Neil Badger, Dowgate Capital Stockbrokers (Broker)

Tel: 01293 517 744


Information regarding Daniel Levi required to be disclosed under Schedule 2(g) of the AIM Rules for Companies.

Full name - Daniel Levi

Age - 50

Former partnerships - Madchester Media Partnership (business continued and now operated as part of Daniel Levi t/a Daniel Levi Associates)

This information is provided by RNS
The company news service from the London Stock Exchange

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