News Column

Sefton Resources Issues 32 Million Shares To Settle Fees, Expenses

July 21, 2014

Tom McIvor



LONDON (Alliance News) - Sefton Resources Inc Monday said it has settled a range of fees and expenses through share issuances as part of its ongoing plan to refinance and jump start its operations following a disastrous 2013.


The oil and gas explorer, with operations in California and Kansas said it issued 32.2 million shares on Monday to settle outstanding accounts payable, employee compensation and directors fees for a total amount of USD88,045.


The company said the shares were issued at 0.1592 pence per share, calculated on the average closing price for the period June 30 to July 16. On Monday, its shares were up 37% to 0.24 pence, putting them top of the AIM All-Share risers during early trading.


Sefton added that as part of its share issuance Non-Executive Director Mark Smith has now increased his holding in the company to 1.5%, while two other non-executive directors have been provided with shares worth over 1% of the company.


The news comes a week after the company said a new forbearance agreement had been executed by Hawker Energy LLC, a subsidiary of Sara Creek Gold Corp, and Sefton, helping the company to deal with its financing woes.


Sefton said at the time that Hawker continues to finance its ongoing field operations with the expansion of its previously announced loan to USD1.5 million from USD1.0 million.


The company has been through a torrid period of late, swinging to a pretax loss in 2013 as increases in revenue were hit by significant impairment charges and higher general and administrative expenses following a case against the bloggers Tom Winnifrith and Dan Levi during the period.


The litigation, which was settled outside of court, led to Sefton Chief Executive Jim Ellerton stepping down and an internal investigation during 2013.


The company brought the libel case against Winnifrith and Levi after they alleged Fox Davies Capital resigned as Sefton's advisers because it felt the company was misleading investors.


At the end of June, Sefton said that its bank agreed to an extension of final repayments until December 28, as long as Sefton made an immediate payment of USD360,000, monthly payments of USD100,000 plus interest at 8% beginning July 31 and payments of legal fees of USD20,000 per month during the forbearance period.


In a statement in May, Sefton Resources said it had entered into a letter of intent with a private US-based energy company, without naming the company, which it said will provide it with interim working capital, but will also see the funder acquire a 80% stake in its operating subsidiary in California, TEG USA, which holds the Tapia field.


In June, Sefton said the inter-creditor agreement allows Hawker Energy to advance additional subordinated loans to Sefton Resources in two instalments, which will fund up to two 30-day extensions of the existing borrowing facilities with its bank.


It said the extension payments advanced to the group by Hawker Energy will be paid to the bank in settlement first of accrued interest, and then to reduce the principal amount of the existing borrowing facilities.







For more stories on investments and markets, please see HispanicBusiness' Finance Channel



Source: Alliance News


Story Tools






HispanicBusiness.com Facebook Linkedin Twitter RSS Feed Email Alerts & Newsletters