United Oil & Gas plc has given its shareholders three days from tomorrow’s general meeting to vote on resolutions including February’s conditional £1 million fundraise.
GOING CONCERN
The company said it was “crucial” to approve the resolutions, warning that rejection threatened its future survival.
United’s current interests are in Jamaica and onshore UK, after leaving Egypt with a $3.8m default notice and failing to sell the £5.7m Maria discovery last year.
In a letter to shareholders, non-executive chairman Graham Martin wrote that United would have to seek other financing if shareholders refused to support the fundraise.
“Failure to secure alternative forms of finance at all or on commercially acceptable terms, or undertaking other activities such as delaying or reducing capital expenditure, could have a material adverse effect on the company’s business, financial condition, prospects, capital resources, cash flows, share price, liquidity, results and/or future operations.
“In particular, failure to conclude the fundraising will compromise the company’s ability to continue as a going concern.”
He added that United’s failure to fulfil its long-term exploration and appraisal programme or meet its work commitments could result in the “premature termination, suspension or withdrawal” of its licences.
United’s general meeting will open and adjourn until 11am on 20 March, allowing voting to remain active until 11am on 18 March, during which period the company will “engage with shareholders regarding their voting intentions”.
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