How nice European Lithium Limited are, all round nice guys. Now I wonder why they did this?
"1 On 30 April 2016, European Lithium Limited, the parent entity of 100% owned European Lithium Ltd, forgave €13,191,790 of loans payable by European Lithium AT and its subsidiaries."
This one a bit further down makes a bit more sense. Although the figures are different and they added another loan.
"On 30 April 2016, European Lithium Limited, the parent entity of 100% owned European Lithium AT, forgave €13,206,861 of loans payable by European Lithium AT and its subsidiaries. On the same date, ECM Lithium AT GmbH forgave €291,362 of loans payable by European Lithium Ltd."
With out the very kind forgiveness of the loans European Lithium AT (investment) Ltd. had net assets (liabilities) of approx. -1.5 million euro. at 31-Dec-2015 and had no cash to speak of. Take away the loan in Apr-2016 and it looks a whole lot better.
"As referred to in Note 1(b) to the consolidated financial statements, the consolidated financial statements have been prepared on a going concern basis.
At 31 December 2015, the consolidated entity had a working capital deficiency of EUR198,565 and had incurred a loss after tax for the half year ended 31 December 2015 of EUR 48,005. The ability of the parent company and consolidated entity to continue as going concerns is subject to the continuing support of the ultimate parent entity, European Lithium Limited and/or the transaction with Paynes Find Gold Limited progressing and being ratified by shareholders and statutory authorities. In the event that the ultimate parent entity, European Lithium Limited, does not provide funding, the transaction with Paynes Find Gold Limited does not proceed, or the Board is not successful in recapitalising the parent and consolidated entity and in raising further funds,
the company and its subsidiary may not be able to meet their liabilities as they fall due and the realisable value of the company’s and its subsidiary’s assets may be significantly less than book values."
DLC Price at posting:
0.6¢ Sentiment: None Disclosure: Not Held
