21st Feb 2014 09:59
LONDON (Alliance News) - Neos Resources PLC said Friday that it will not prepare its overdue Annual Report on a going concern basis, as it continued discussions with its two largest shareholders to secure further funding in order retain its AIM listing.
The former bio-fuels company entered talks with its shareholders in January. At that time the company said it had now become an investing company because it has decided that it should focus on safeguarding its remaining cash instead of attempting to conduct any business. The company will seek approval of "an investing policy" at its next annual general meeting.
The directors, who decided to stop trading after reaching the conclusion that the company wouldn't be able to make "sustainable profitable volumes in the near future", have waived any rights to receive remuneration for 2014 until further notice, according to a company statement.
In December, Neos said it would miss the deadline for its annual report after terminating its operations in India and switching management focus to Geneva.
"The wind down of the Indian business has continued as anticipated in the announcement dated October 15, 2013 and previous announcements. As a consequence, the residual Indian oil seed inventory balances were liquidated in December 2013," Neos said.
"The timing of any subsequent distribution/remittance from India to the group remains uncertain as it will be tied into the dissolution of the local entities - a process that the board has been advised should take twelve months to complete from now," the company added.
The company said Friday that given the need to publish the overdue report as soon as possible, and given the current absence of a funding commitment, it will prepare the accounts on a non-going concern basis.
As a result of missing the deadline Neos' shares were suspended from trading in December.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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