FMS Ann re the de listing dated 13/12/18 -
https://www.asx.com.au/asxpdf/20181213/pdf/4415xcb742x2cf.pdf
On page 5 of this Ann it was stated:-
“Flinders does not have the financial capacity to undertake the Buy-Back and as such the Company has entered into a loan agreement with PIO Mines Pty Limited, a subsidiary of TIO NZ (Loan Facility) to fund the Buy-Back which will be repaid by the rights issue.” (my bold & underline!)
The loan facility was to be
short term with a known clearance by way of pre committed take up of Rights Issue entitlement by TIO NZ (generous of them
) just like previous recent loans.
Obviously the Rights issue was unacceptable to the Takeover Panel and TIO NZ have undertaken to extend loan term for 3 years on arms length terms including capitalising interest with no known repayment avenue.
The statement above confirms that the Directors acknowledge Flinders has limited financial capacity and until they confirm viability of PIOP and have reasonable prospects for an Infrastructure solution they cannot possibly commit FMS to a loan of this nature.(Note -
not having the financial capacity to undertake the Buy Back - is the same as not having the capacity to borrow to fund it on commercial terms)
The Buy Back is obviously not possible as we can't afford it, so at this stage Flinders does not have the means to satisfy a key requirement of any delisting proposal (provide liquidity for those not wishing to retain shares following de listing)
Just thought I would post to confirm that it appears Directors have the same view as the rest of us in relation to FMS not being in a position to borrow these funds...………
