Scirocco Energy plc said it had defaulted the terms of its Prolific Basins LLC loan facility following defeat of two resolutions at the company’s general meeting.
OUTSTANDING BALANCE
Of a total of six, resolutions four and five failed to gain the required majority, with resolution five key to maintaining the terms of the facility.
Scirocco added it would engage with Prolific Basins over its next steps, which could include paying the outstanding balance of $545,000 from existing cash resources.
RUVUMA
Non-executive chairman Alastair Ferguson said that the company had explained to shareholders the risks associated with failure to pass resolution five.
“It is clear from the voting results that there is a significant number of shareholders who are not supportive of the company and, given the similarity of votes against the Ruvuma disposal at the recent general meeting, we assume that transaction is the crux of their issue.”
He added that the board urged shareholders to reassess their position and that it would engage with shareholders to understand concerns and outline the company’s long-term growth strategy.
In his opening formal statement, Mr Ferguson had told shareholders that the sale of Ruvuma to Wentworth Resources for $16 million was the best deal available.