30th Jan 2019 12:59
LONDON (Alliance News) - Crusader Resources Ltd said Wednesday it will seek shareholder approval to cancel its shares from trading on London's AIM.
The company said it will convene a general meeting on February 28. Subject to the vote, Crusader expects its shares to be cancelled on March 8.
Shares in Crusader Resources are currently suspended but was last quoted at 1.375 pence each.
The company said: "The board has regrettably concluded that it would be in the best interests of the company and shareholders as a whole if the admission of the company's shares to trading on AIM were now to be cancelled and a special resolution is to be proposed therefore at the general meeting to approve the AIM cancellation."
Crusader said it will continue to trade on Sydney's Australian Securities Exchange.
On Tuesday, the company said shareholder Stephen Copulos has entered into binding agreements to subscribe for an additional AUD1 million, about GBP540,000, worth of convertible notes.
The convertible notes are part of a larger fundraising, of about AUD2.4 million, with Copulos Group subscribing for AUD1.5 million.
Crusader said the funding will help with its immediate funding requirements. However, the company said it needs to raise "substantial further funds" to progress the company's projects along with the AIM-listing costs.
Crusader listed on AIM last April, hoping to access a broader range of institutional investors to progress development of the company's exploration assets in Brazil.
Crusader said: "Following admission, the company's working capital position was however, adversely affected by additional costs and fees incurred in relation to the admission, the non-payment by the purchaser of the Posse iron ore mine of the deferred consideration payments and additional consultants' fees. The impact of these adverse effects was such that the company needed to raise additional funding earlier than anticipated."
The company also announced Tuesday it has received a notice from shareholders - William Brown, Vitor Pty Ltd, Chinetti Investments Pty Ltd and Parkwise Corporation Pty Ltd - requesting the directors of Crusader to convene a general meeting.
At the general meeting, the group of shareholders - who hold "at least" a 5% interest in the company - want the company's shareholders to vote on the removal of Engelbrecht and Independent Non-Executive Chair Andrew Vickerman.
Crusader must hold the meeting within two months.
Crusader said it is in "advanced discussions" with these shareholders about further funding. The company said: "While there is potential interest from investors in funding the company going forwards, this interest is from parties based in Australia and who have expressed no interest in the company maintaining the listing of its shares on AIM. "