A bit of a surprised as it was stated they got funds for working capital for 2 years after the last CR (20/11/2017 GEV Replacement Prospectus)? Another acquisition or new opportunities came up?
Quote:
Use of Funds The Company intends to apply funds raised from the Offer, together with existing cash reserves, following re-admission to the Official List of the ASX (for the purpose of satisfying ASX’s requirements for re-listing following a significant change to the nature and scale of the Company’s activities) over the next two (2) years as follows: Item Amount (A$) Percentage Existing cash reserves of the Company3 $2,738,000 41% Funds raised under the Offer $4,000,000 59% TOTAL $6,738,000 100% Use of Funds: SeaNG Transaction4 $746,000 11% Estimated costs of the SeaNG Transaction5 $684,000 10% Recompliance with Chapters 1 & 2 of the ASX Listing Rules $177,000 3% Investment in Meridian Holdings Co6 $1,276,000 19% Lead Manager fees $240,000 4% 2787-07/1812876_1 28
SeaNG administration expenses for 2 years7,8 $1,522,000 22%
GEV administration expenses for 2 years7,9 $1,864,000 28%
Working capital10 $229,000 3% TOTAL $6,738,000 100%
Notes:
1. Amounts are rounded to the nearest A$1,000. 2. Currency conversions are based on a US$/A$ exchange rate of 0.7839 and a C$/A$ exchange rate of 0.9755. 3. Existing cash reserves at 30 September 2017. 4. The Company must make a Consideration Cash payment of up to US$585,000 to SeaNG Debenture Holders under the Arrangement Agreement. 5. This figure refers to the estimated remaining costs of the Acquisition in relation to both GEV and SeaNG. As at the date of this Prospectus, GEV and SeaNG have expended A$925,104 in relation to the Acquisition. 6. US$1 million investment in Meridian Holdings Co. (Meridian) pursuant to an agreement whereby the Company has acquired a 5% interest in Meridian for US$2 million in total comprising two instalments of US$1 million each. The Company has paid the first instalment with the second instalment due on 29 December 2017. If the Company chooses to not pay all or part of the second instalment, then the Company’s holding of shares in Meridian will be proportionally adjusted so that its percentage holding of Meridian shares will be reduced to reflect the amount actually paid compared to the original US$2 million purchase price. 7. Includes, as of the date of this Prospectus, the committed expenses relating to the ABS Full Approval process, being US$400,000 (A$510,270), which are reflected equally in the administration expenses of SeaNG and GEV, which will each contribute US$200,000 (A$255,135). 8. The SeaNG administration expenses include payments under the proposed employment agreements with David Stenning and John Fitzpatrick and US$200,000 of expenses relating to the ABS Full Approval process (see Note 7 above). 9. The GEV administrative expenses includes staff costs of A$550,000, consulting fees of A$221,000, Calgary office expenses of A$179,000 and US$200,000 of expenses relating to the ABS Full Approval process (see Note 7 above). 10. The Company intends to divest the oil and gas interests that it owns in the US. The net sale proceeds from the sale will add to the working capital that is available, as will the net proceeds of any future capital raisings. The above table is a statement of current intentions as of the date of lodgement of this Prospectus with the ASIC. As with any budget, intervening events and new circumstances have the potential to affect the ultimate way funds will be applied. The Board reserves the right to alter the way funds are applied on this basis. Actual expenditure may differ significantly from the above estimates due to a change in market conditions, the development of new opportunities and other factors (including the risk factors outlined in Section 11). The Board believes that the funds raised from the Offer, combined with existing funds, provide the Company with sufficient working capital to progress its business objectives. Due to the time required to develop and construct integrated CNG projects, GEV does not intend to make money or generate income in the short term.
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