30th May 2014 14:38
LONDON (Alliance News) - Central Rand Gold Ltd Friday said its shares have been restored to trading on AIM, and due to late financial adjustments said its losses in 2013 were larger than previously reported.
Central Rand Gold's shares were suspended in London Friday morning at the request of the company, as it awaited clarification from its auditors of the accounting treatment of a loan in its 2013 accounts.
"In the unaudited financial statements released on 16 May 2014, an element of the Redstone convertible loan note was treated as equity. However, on a technical review from the auditors as the audit process was finalised this element has been reclassified as a derivative liability with a consequential impact on the company's results," Central Rand Gold.
In a statement issued Friday afternoon, Central Rand Gold said that due to a reclassification, its pretax loss in 2013 is now USD14.8 million, compared to the USD13.3 million figure it reported in its full-year results announcement on May 16.
Redstone Capital Ltd is a cornerstone investor in Central Rand Gold, after injecting USD7.25 million into the company last August through a convertible loan. It currently has a stake of 31.91% in the company, after also investing a further GBP2.1 million through the company's open offer in January. That stake would increase to about 67% if all its loans and warrants were converted.
Central Rand Gold shares were down 16.2% at 9.95 pence Friday afternoon.
By Steve McGrath; [email protected]; @SteveMcGrath1
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