It will serve as payment for outstanding rent.
ISR Capital has clinched a settlement agreement with MMP Resources Limited (MMPRL) that obligates MMPRL to issue 26.5m new ordinary shares as settlement of rent outstanding from 1 March 2015 to 31 December 2015 and other charges as well as rent payment for 1 January 2016 to 31 March 2016.
According to ISR Capital’s announcement, the aggregate cost of the new shares amount to $259,7888, which represents 17.5% of ISR Capital’s audited consolidated net tangible assets as at 31 December 2014. They will be allotted and issued at an issue price of $0.0098 per new share. The new shares’ receipt is considered payment in lieu of cash.
ISR Capital reported that it plans to liquidate the shares when cashflows are required for working capital, while actively keeping an eye on the progress of MMPRL shares and the market.
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