20th Apr 2015 11:39
LONDON (Alliance News) - Tau Capital PLC Monday said the sale of its holding in Stopharm LLP is still ongoing, but warned that shareholders in Stopharm, including Tau, will be asked to make a subordinated loan in order to sustain the company's banking facility.
Tau said the maximum amount it may be asked to contribute is USD700,000, which would be deducted from the settlement proceeds that Tau receives from the sale of Stopharm.
It said that terms of the loan note have not yet been negotiated, and added that while it would be transferable, the transaction carries significant uncertainty as to timing and discount, and consequently it may not be possible to sell the subordinated loan.
Tau had said in September that the sale price for Stopharm would be USD7 million before costs, and had originally anticipated completion by the end of 2014. The company is being sold to Capital Gate Holdings LLP, which owns a 10% stake in Tau.
It said it will make a further announcement as soon as more information is available.
The company added that the sale of its holding in Lucent Petroleum LLP for USD250,000 has been completed.
Shares in Tau were untraded on Monday, last trading at 0.147 pence.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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