3rd Dec 2015 09:27
LONDON (Alliance News) - Kibo Mining PLC Thursday said it may not receive the funds it is owed from collapsed stockbroker Hume Capital Securities PLC until next year following another delay, but said it has been told no further delays are expected going forward.
Kibo shares were down 3.0% to 4.0 pence per share on Thursday morning.
Kibo has been trying to claw back money from Hume throughout most of 2015 after Kibo conducted a GBP950,000 placing but only received GBP219,500 in proceeds as the remaining GBP730,500 was locked up in Hume's client money account.
The broker fell in administration just after Kibo Mining had conducted that placing back in February, meaning that the money for shares issued to third-party investors was tied up in Hume Capital's client money account.
That money was stuck in the account because Hume could not release the funds without securing approval from the Financial Conduct Authority because it was in administration.
In March, Kibo warned that GBP204,000 of the proceeds held in Hume's account was unlikely to be recovered, meaning it is now chasing GBP526,000 from Hume. However, Kibo has previously said it was expecting to recover "substantially all" of the GBP526,000 - suggesting there is a chance Kibo will receive less.
Chief Executive Louis Coetzee stressed the delay is not affecting Kibo's cash balance or cashflow position and reiterated the company already made a financial provision to provide short term cashflow stability.
Originally, the administrators at Hume committed to paying the funds to Kibo in September but failed to fulfil that promise, leading Kibo to go to court in order to get a formal ruling on the matter.
In August, Kibo got a favourable court ruling which stated the GBP526,000 had to be released to Kibo on October 2.
The administrators at Hume responded and said it would pay the funds at some stage between October 2 and Wednesday, but once again Kibo has not received any funds.
On Thursday, Kibo said the administrators have said there has been a further delay, vowing to pay the GBP526,000 in full at some point between November 27, 2015 and January 27, 2016.
Although there will be concerns of further delays in the future, Kibo said the administrators have "confirmed that no further delays [or] postponements are expected".
By Joshua Warner; [email protected]; @JoshAlliance
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