News Column

Coburg Group Reviewing A Number Of Proposed Investments

August 29, 2014

Hana Stewart-Smith

LONDON (Alliance News) - Investment holding company Coburg Group PLC Friday said that the shaping of the future of the company is "the absolute priority" for its new board, and said it was in the process of reviewing a number of proposed strategic investments.

It raised GBP204,750 in a placing in May, which it said means it now has "sufficient cash" to develop its plans and raise further funding in placings as and when appropriate investment opportunities arise.

The company is looking at investments in early stage exploration projects, and developing a portfolio of natural resource stocks in companies that are listed or at the pre-initial public offering stage. Coburg said that it hopes with time to develop a portfolio consisting of around 20 companies. It will also focus on a potential reverse-takeover of a natural resources company, although it noted it is not restricted to that sector.

The company posted a pretax loss of GBP46,693 in the year to the end of April, narrowed from GBP87,412 the year before, as the company posted lowered administrative expenses. It is not revenue producing. These costs primarily related to maintaining its AIM listing, although this partly offset by gains of GBP29,479 from the sale of investments during the year, it said.

The company opted to reduce the carrying value of its 10.9% interest in African Eagle Resources as its shares were temporarily suspended as it had not completed an acquisition or implemented an investment policy under AIM rules. It has opted to reflect the value of the investment at GBP156,631, rather than the market value prevailing at April 30, which would be GBP268,268.

It said it currently has no reason to believe that African Eagle's shares will resume trading at a significantly lower price than the 0.28 price at the time of suspension.

Shares in Coburg are untraded Friday; it last closed at 70.00 pence.

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Source: Alliance News

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