26th Feb 2016 14:13
LONDON (Alliance News) - Herencia Resources PLC Friday said it has secured a USD50,000 loan to allow the company to continue trading for the next couple of weeks as the company continues its search for a resolution to its very fragile financial position.
The loan has been secured from one of its substantial shareholders, Lind Partners, and will fund the company until March 7. The loan is interest free and repayable after six months, and subject to shareholder approval, can be converted into shares at GBP0.0001.
"The directors believe that this will give the company sufficient funds to continue trading until 7 March 2016. The directors intend that this time will be spent negotiating with Next and Herencia's substantial shareholders to agree a way forward for the company," said Herencia.
Lind Partners has "indicated" it is willing to provide another loan of up to USD200,000 before March 7, but Herencia stressed that is not guaranteed.
Herencia warned earlier this month that its financial position was in a dire position and had already said it only had enough funds to keep going until the end of this month or early March, as it scrambles to secure a longer term solution to its problem.
Importantly, the USD50,000 loan secured Thursday follows on from a USD100,000 loan from the company's directors earlier this month.
Herencia shares were down 20% on Friday afternoon to 0.0200p.
By Joshua Warner; [email protected]; @JoshAlliance
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