REABOLD RESOURCES PLC
Annual Report and Financial Statements
For the year ended 31 December 2015
Registered number 3542727
REABOLD RESOURCES PLC
Financial statements for the year ended 31 December 2015
_______________________________________________________________________________________
Contents
Officers and professional advisors
Chairman’s statement and strategic report
Board of directors
Directors’ report
Statement of directors’ responsibilities
Independent auditor’s report
Statement of comprehensive income
Statement of financial position
Statement of changes in equity
Statement of cash flows
Page
2
3-4
5
6-7
8
9
10
11
12
13
Notes to the financial statements
14-26
Reabold Resources Plc Report & Accounts
1
REABOLD RESOURCES PLC
Officers and professional advisers
_______________________________________________________________________________________
Directors
Jeremy Edelman (Chairman)
Anthony Samaha
Secretary
Milford Secretaries Limited
Registered Office
200 Strand
London
WC2R 1DJ
Registered number
3542727
Solicitors
Auditor
Nominated advisor
Registrar
Bankers
Kerman & Co LLP
200 Strand
London
WC2R 1DJ
Mazars LLP
Tower Bridge House
St. Katharine’s Way
London
E1W 1DD
Beaumont Cornish Limited
2nd Floor, Bowman House
29 Wilson Street
London
EC2M 2SJ
Neville Registrars Limited
18 Laurel Lane
Halesowen
West Midlands
B63 3DA
Barclays Bank Plc
Level 27,
1 Churchill Place,
London E14 5HP
Reabold Resources Plc Report & Accounts
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REABOLD RESOURCES PLC
Chairman’s statement and Strategic report
_______________________________________________________________________________________
The Chairman’s statement and the Strategic report for Reabold Resources Plc (“the Company”) for the year ended 31 December 2015
are presented below.
The Board has continued to be active in the identification and evaluation of investment opportunities in various sectors towards the
objective of an acquisition that drives creation of value for stakeholders.
Placements
The Company announced on 18 September 2015 the placement by the Company of 40,000,000 new Ordinary Shares of 0.1p each in
the Company at a price of 0.5p per share, raising £200,000 for working capital purposes.
On 8 January 2016, the Company announced an additional placement of 40,000,000 new Ordinary shares of 0.1p each at a price of
0.5p per share, raising £200,000 for working capital purposes.
The Board is delighted to have the support of these two new strategic investors gained through these placements
Mogul Ventures Corp. Investment
The Company holds 5 million shares in Mogul Ventures Corp. (“Mogul”), a private company focused on natural resources in Mongolia,
principally in tin. Reabold’s holding in Mogul amounts to a 4.2% undiluted, and 4.1% fully diluted interest. On 20 February 2015,
Mogul entered into an amended and restated arrangement agreement (“the Arrangement Agreement”) with Knowlton Capital Inc.
(“Knowlton”), a TSX-V listed company, for the acquisition by Knowlton of all of the issued and outstanding shares of Mogul. The
Arrangement Agreement superseded a letter of intent dated 23 May 2014 and a definitive agreement dated 22 August 2014. The
Arrangement Agreement constituted a reverse takeover of Knowlton, the completion of which was subject to a number of conditions,
including approval by the TSX-V, Knowlton’s shareholders and Mogul’s shareholders. On 29 April 2016, Knowlton announced the
termination of the Arrangement Agreement with Mogul to pursue another reverse take-over transaction.
In November 2015, Mogul issued a convertible debenture in the amount of CAD $200k with a term of 1 year, an annual coupon of 3%
and convertible to Mogul equity at CAD $0.25 per share.
In Q4 2015, Mogul conducted a drilling program to collect samples for metallurgical test work at Mogul’s Oortsog Ovoo tin-
polymetallic project, which is expected to be completed by the end of Q2 2016. Mogul believes the program will be important in
significantly de-risking the project and securing funding towards its development. Notwithstanding the termination of the transaction
with Knowlton, the management and key stakeholders in Mogul remain positive towards Mogul’s future in the public markets under
improved market conditions.
Financial Risk Management
The Company’s continuing operations expose it to foreign currency, credit and liquidity risks. The Company was exposed to price risk
during the year on its investment in unlisted shares. The Board’s strategy in managing the market price risk inherent in the Company’s
equity investment is determined by the requirement to meet the Company’s investment objective. The directors manage these risks by
regular reviews of the investment within the context of current market conditions. The size of the Company means that it is unnecessary
and impractical for the Directors to delegate the responsibility of monitoring financial risk management to a sub-committee of the
Board.
Financial Review
The loss of the Company for the 12 months ended 31 December 2015 was £104,000 (2014: loss of £118,000), in line with expectations.
The net assets as at 31 December 2015 were £624,000 (2014: £424,000). As at 31 December 2015, the Company had cash of £481,000.
Reabold Resources Plc Report & Accounts
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REABOLD RESOURCES PLC
Chairman’s statement and Strategic report
_______________________________________________________________________________________
Outlook
Having successfully raised further capital and the added support from two new strategic shareholders, the Board is moving forward
positively to drive shareholder value through the investment strategy. Whilst the Board believes there are positive cyclical investment
opportunities in resources stocks, they may be subject to significant volatility in financial markets and commodity prices, as well as
other potential risk areas, including operational, geological, environmental, sovereign issues and access to capital. The Board will
evaluate investment opportunities in other sectors as they arise. The Board is positive towards the outlook for quality investment
opportunities.
The Board looks forward to reporting further in due course.
This report was approved by the Board and signed on its behalf:
Jeremy Edelman
Director
29 June 2016
Reabold Resources Plc Report & Accounts
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REABOLD RESOURCES PLC
Board of Directors
_______________________________________________________________________________________
Jeremy Edelman - Executive Chairman
Jeremy Edelman holds Bachelor degrees in Commerce and Law together with a Masters degree in Applied Finance. Jeremy is admitted
as a solicitor to the Supreme Courts of Western Australia and New South Wales. Jeremy subsequently worked for some of the world's
leading investment banks, including Bankers Trust and UBS Warburg in debt and acquisition finance. He has held consulting and
director positions in listed companies in the UK and Australia, such as Mt Grace Resources NL, with a focus on resource exploration
and development, including investment companies established with the specific objective of investing in resources projects. He also
has corporate finance experience, having been responsible for co-coordinating a number of companies in making acquisitions in a
variety of resource sectors, including oil and gas, uranium, molybdenum, base metals and coal. He has worked in various regions of
the world, including the Republic of Kazakhstan, Russia, South Africa and Australia. Jeremy is currently a Non-Executive Director of
Leni Gas Cuba Limited. Jeremy served as a Director of Altona Energy Plc (also known as Altona Resources Plc) until 4 July 2006,
Executive Director of Leni Gas & Oil PLC from August 2006 to December 2010 and Director of Braemore Resources Plc until 27 July
2005.
Anthony Samaha - Executive Director
Anthony Samaha is a Chartered Accountant who has over 20 years' experience in accounting and corporate finance, including resources
development. Anthony worked for over 10 years with international accounting firms, including Ernst & Young, principally in corporate
finance, gaining significant experience in valuations, IPOs, independent expert reports, and mergers and acquisitions. He has extensive
experience in the listing and management of AIM quoted companies, such as Equatorial Palm Oil Plc, Altona Energy Plc and Braemore
Resources Plc, including fund raisings, project development and mergers and acquisitions. Anthony has been involved in acquisitions
and resource projects in various regions of the world, including Australia, South Africa, West Africa, North America, India, Kazakhstan
and the People's Republic of China. Anthony is currently the Finance Director of Leni Gas Cuba Limited and AfriAg Plc, which are
listed on the ISDX Growth Market. He holds Bachelor of Commerce and Bachelor of Economics degrees from the University of
Western Australia, and is an Associate of the Institute of Chartered Accountants in Australia and an Associate of the Financial Services
Institute of Australasia.
Reabold Resources Plc Report & Accounts
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REABOLD RESOURCES PLC
Directors’ report for the year ended 31 December 2015
_______________________________________________________________________________________
The Directors submit their report and the audited financial statements of the Company for the year ended 31 December 2015.
Principal activities
At the general meeting of the shareholders of the Company on 19 December 2012, shareholders approved a fundamental change of
business to that of an investing company in the natural resources sector, and is now classified as an Investing Company under the AIM
Rules for Companies (“AIM Rules”). Prior to this date, the principal activity of the Company during the year was that of a holding
company to a group of companies providing specialist business to business marketing services to clients in the technology and media
industries.
Results and dividends
The results of the Company are shown on page 10. No dividends were declared or paid in the year (2014: £nil). The Directors do not
recommend the payment of a final dividend.
Post balance sheet events
Details of post reporting date events are disclosed in Note 20 of the financial statements.
Financial Risk Management
The Company’s continuing operations expose it to foreign currency, credit and liquidity risks. The Company was exposed to price risk
during the year as there were purchases of listed and unlisted shares. The Board’s strategy in managing the market price risk inherent
in the Company’s portfolio of equity investments is determined by the requirement to meet the Company’s investment objective. The
directors manage these risks by regular reviews of the portfolio within the context of current market conditions. The size of the
Company means that it is unnecessary and impractical for the Directors to delegate the responsibility of monitoring financial risk
management to a sub-committee of the Board. Refer to Note 17 of the financial statements, for further details.
Directors and their interests
The names of the Directors who held office during the year and their shareholdings are shown below.
Director
Jeremy Edelman *
Anthony Samaha
At 31 December 2015
144,000,000
-
At 1 January 2015
144,000,000
-
* including 124,000,000 shares held by Saltwind Enterprises Ltd, a company connected with Jeremy Edelman
Directors’ indemnity
The Company maintains a directors’ and officers’ liability policy on normal commercial terms which includes third party indemnity
provisions.
Going concern
The financial statements have been prepared on the going concern basis. The Directors expect to be able to be able to obtain further
funding for the Company. However, there can be no guarantee that the required funds will be raised within the necessary timeframe
or on terms that will be acceptable to the Company.
Outlook
A summary of the outlook for the Company is given within the Chairman’s Report on page 3.
Political and charitable contributions
The Company made no contributions to charitable or political bodies during the year (2014: £Nil).
Reabold Resources Plc Report & Accounts 6
REABOLD RESOURCES PLC
Directors’ report for the year ended 31 December 2015
_______________________________________________________________________________________
Substantial shareholders
The following had interests in 3% or more of the voting capital of the Company as at 16 June 2016:
Holder
Saltwind *
Delta Oil Company Ltd
Silverwood Ventures Ltd
Pelamis Investments Ltd
Mazen Haddad
Jeremy Edelman
KIA Ltd
Sunvenus Holdings Ltd
* Saltwind is connected with Jeremy Edelman
No. of shares
%
124,000,000
40,000,000
40,000,000
40,000,000
24,600,000
20,000,000
10,000,000
10,000,000
38.6
12.5
12.5
12.5
7.7
6.2
3.1
3.1
Treasury stock
At the Extraordinary General Meeting held on 29 May 2008 shareholders authorised the Company to purchase its own shares and
during the remainder of the 2008 financial year the Company entered into a number of transactions acquiring a total of 104,136 shares
which it put into Treasury. In 2014 an Employee Benefit Trust (“EBT”) held 9,311 Ordinary Shares, which were disposed and the EBT
was dissolved. In the current year there is no treasury stock.
Corporate governance
The Board is committed to ensuring good standards of corporate governance in so far as practicable for a company of this size.
Board of Directors
The Board meets regularly to determine the policy and business strategy of the Company and has adopted a schedule of those matters
that are reserved as the responsibility of the Board. Throughout 2015 the Board consisted of two executive Directors, including the
Chairman.
Board committees
In view of the current size of the Company, the Board has not delegated certain authorities to committees. The Board intends to
implement an Audit Committee, Remuneration Committee and Nominations Committee, when the Company has reached a sufficient
size.
Controlling party
In the opinion of the Directors, Jeremy Edelman is the ultimate controlling party in the share capital of the Company.
Statement of disclosure to auditor
So far as the Directors are aware, there is no relevant audit information of which the Company’s auditor is unaware, and they have
taken all the steps that they ought to have taken as Directors in order to make themselves aware of any relevant audit information and
to establish that the Company’s auditor is aware of that information.
Auditor
In accordance with section 489 of the Companies Act 2006, a resolution to reappoint Mazars LLP was put to the Annual General
Meeting held on 5 August 2015 and was approved.
By order of the Board, 29 June 2016
A Samaha
Registered Office:
200 Strand
London
WC2R 1DJ
Reabold Resources Plc Report & Accounts 7
REABOLD RESOURCES PLC
Statement of Directors’ responsibilities
_______________________________________________________________________________________
The Directors are responsible for preparing the Strategic report and the Directors’ report and the financial statements in accordance
with applicable law and regulations.
Company law requires the Directors to prepare financial statements for each financial year. Under that law the Directors have elected
to prepare financial statements in accordance with International Financial Reporting Standards (“IFRS”) as adopted for use in the
European Union. Under company law the Directors must not approve the financial statements unless they are satisfied that they give a
true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these
financial statements, the Directors are required to:
select suitable accounting policies and then apply them consistently;
make judgments and accounting estimates that are reasonable and prudent;
state whether IFRS as adopted by the European Union have been followed, subject to any material departures disclosed and
explained in the financial statements;
provide additional disclosures when compliance with specific requirements in IFRS is insufficient to enable users to understand
the impact of particular transactions, other events and conditions on the entity’s financial position and financial performance; and
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in
business.
The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company’s
transactions and disclose with reasonable accuracy at any time the financial position of the Company and enable them to ensure that
the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company
and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The Directors are responsible for the maintenance and integrity of the corporate and financial information included on the Company’s
website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from
legislation in other jurisdictions.
Reabold Resources Plc Report & Accounts
8
REABOLD RESOURCES PLC
Independent auditor’s report to the members of Reabold Resources Plc
_______________________________________________________________________________________
We have audited the financial statements of Reabold Resources Plc for the year ended 31 December 2015 which comprise the Statement
of Comprehensive Income, the Statement of Financial Position, the Statement of Changes in Equity, the Statement of Cash Flows, and
the related notes. The financial reporting framework that has been applied in their preparation is applicable law and International
Financial Reporting Standards (IFRSs) as adopted by the European Union.
Respective responsibilities of Directors and auditors
As explained more fully in the Directors’ Responsibilities Statement set out on page 7, the Directors are responsible for the preparation
of the financial statements and for being satisfied that they give a true and fair view.
Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International
Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board’s Ethical Standards
for Auditors. This report is made solely to the Company’s members, as a body, in accordance with Chapter 3 of Part 16 of the
Companies Act 2006. Our audit work has been undertaken so that we might state to the Company’s members those matters we are
required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or
assume responsibility to anyone other than the Company and the Company’s members as a body for our audit work, for this report, or
for the opinions we have formed.
Scope of the audit of the financial statements
A description of the scope of an audit of financial statements is provided on the Financial Reporting Council’s web-site at
www.frc.org.uk/auditscopeukprivate.
Opinion on the financial statements
In our opinion the financial statements:
give a true and fair view of the state of the Company’s affairs as at 31 December 2015 and of its loss for the year then ended;
have been properly prepared in accordance with IFRSs as adopted by the European Union; and
have been prepared in accordance with the requirements of the Companies Act 2006.
Opinion on the other matters prescribed by the Companies Act 2006
In our opinion the information given in the Strategic report and the Directors’ report for the financial year for which the financial
statements are prepared is consistent with the financial statements.
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our
opinion:
adequate accounting records have not been kept by the Company, or returns adequate for our audit have not been received from
branches not visited by us; or
the Company financial statements are not in agreement with the accounting records and returns; or
certain disclosures of Directors’ remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Samantha Russell (Senior Statutory Auditor)
for and on behalf of Mazars LLP
Chartered Accountants and Statutory auditor
Tower Bridge House
St. Katharine’s Way
London E1W 1DD
29 June 2016
Reabold Resources Plc Report & Accounts
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REABOLD RESOURCES PLC
Statement of comprehensive income for the year ended 31 December 2015
_____________________________________________________________________________________
Net capital loss on financial assets at fair value through profit or loss
Investment income
Net investment losses
Other operating income
Administration expenses
Operating loss
Finance income
Finance costs
Loss on ordinary activities before taxation
Taxation on loss on ordinary activities
Loss for the financial year
Other comprehensive income
Total comprehensive income for the financial year
Attributable to:
Equity holders
Notes
4
4
6
9
10
11
2015
£’000
-
-
_______
-
-
(104)
(104)
-
-
2014
£’000
(11)
6
_______
(5)
5
(117)
(117)
2
(3)
(104)
(118)
-
-
(104)
(118)
-
-
(104)
(118)
(104)
(104)
(118)
(118)
Loss per share
Basic and fully diluted loss per share (pence)
12
(0.04)
(0.1)
All amounts relate to continuing operations
The notes on pages 14 to 26 form part of these financial statements.
Reabold Resources Plc Report & Accounts
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REABOLD RESOURCES PLC
Statement of financial position as at 31 December 2015
_____________________________________________________________________________________
Company no. 3542727
Notes
2015
£’000
2014
£’000
4
5
13
15
15
17
-
200
200
481
1
482
682
-
200
200
196
2
198
398
395
8,291
200
200
(8,462)
355
8,131
-
200
(8,358)
624
328
58
58
682
70
70
398
ASSETS
Non-current assets
Investments at fair value through profit and loss
Investments available for sale
Current assets
Cash
Trade and other receivables
Total assets
EQUITY
Capital and reserves
Share capital
Share premium account
Advance received for shares to be issued
Capital redemption reserve
Retained earnings
Total equity
LIABILITIES
Current liabilities
Trade and other payables
Total liabilities
Total equity and liabilities
Approved by the Board of Directors on 29 June 2016
Signed on behalf of the board of directors:
Anthony Samaha
Director
The notes on pages 14 to 26 form part of these financial statements.
Reabold Resources Plc Report & Accounts
11
REABOLD RESOURCES PLC
Statement of changes in equity for the year ended 31 December 2015
_____________________________________________________________________________________
Share capital
Share
premium
Advance
received for
shares to be
issued
Capital
redemption
reserve
Retained
earnings
Total
£’000
£’000
£’000
£’000
£’000
£’000
Balance as at 31 December 2013
285
7,726
Total comprehensive income for the year
-
-
Changes in equity for 2014
Issue of share capital
70
405
Balance as at 31 December 2014
355
8,131
Total comprehensive income for the year
Changes in equity for 2015
Issue of share capital
Advance received for shares to be issued
-
40
-
-
160
-
-
-
-
-
-
-
200
200
(8,240)
(29)
(118)
(118)
-
475
200
(8,358)
328
(104)
(104)
-
-
200
200
Balance as at 31 December 2015
395
8,291
200
200
(8,462)
624
The notes on pages 14 to 26 form part of these financial statements.
Reabold Resources Plc Report & Accounts
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REABOLD RESOURCES PLC
Statement of cash flows for the year ended 31 December 2015
_____________________________________________________________________________________
Cash flows from operating activities
Loss before taxation
Adjustments for:
Realised loss on investments
Interest charge
Finance income
Operating cash flows before movement in working capital
Decrease in receivables
Increase/(decrease) in payables
Cash used in operations
Interest paid
Net cash used in operating activities
Cash flows from investing activities
Interest received
Purchase of listed securities
Purchase of unlisted securities
Proceeds from divestiture of listed securities
Net cash flows from investment activities
Cash flows from financing activities
Increase in borrowings – equity margin facility
Repayment of borrowings – equity margin facility
Share placement received
Advance received for shares to be issued
Net cash generated from financing activities
Net increase/(decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning of the period
Cash and cash equivalents at the end of the period
Cash and cash equivalents comprises:
Cash and cash equivalents
Overdraft and borrowings
The notes on pages 14 to 26 form part of these financial statements.
Notes
2015
£’000
2014
£’000
(104)
(118)
-
-
-
11
3
(2)
(104)
(106)
10
9
4
5
4
14
14
15
15
1
(12)
(115)
-
(115)
-
-
-
-
-
-
-
200
200
400
285
196
481
481
-
481
3
20
(83)
(3)
(86)
2
(610)
(50)
599
(59)
416
(416)
325
-
325
180
16
196
196
-
196
Reabold Resources Plc Report & Accounts
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REABOLD RESOURCES PLC
Notes to the financial statements for the year ended 31 December 2015
_____________________________________________________________________________________
Reabold Resources Plc is a company registered in England and Wales under the Companies Act. Registered in England number
3542727 at 200 Strand. London WC2R 1DJ. The nature of the Company’s operations and its principal activities are set out in the
Directors’ report on pages 6 to 7.
1.
Preparation of financial statements
Standards, amendments and interpretations adopted in the current financial year ended 31 December 2015
The adoption of the following mentioned standards, amendments and interpretations in the current year have not had a material
impact on the Company’s financial statements.
IFRIC 21 ‘Levies’ (applicable for annual periods beginning on or after 17 June 2014)
Improvements to IFRS (2011 - 2013) (applicable for annual periods beginning on or after 1 January 2015)
Other than disclosure, there has been no impact on the financial statements of these adoptions.
Standards, amendments and interpretations in issue but not yet effective
The adoption of the following mentioned standards, amendments and interpretations in future years are not expected to have a
material impact on the Company’s financial statements.
Annual Improvements to IFRS (2010-2012) (applicable for annual periods beginning on or after 1 February 2015)
Annual Improvements to IFRS (2012-2014) (applicable for annual periods beginning on or after 1 January 2016)
Amendments to IAS 1 Presentation of Financial Statements – Disclosure Initiative (applicable for annual periods beginning on or
after 1 January 2016)
Amendments to IAS 16 Property, Plant and Equipment and IAS 38 Intangible Assets- Depreciation and Amortisation (applicable
for annual periods beginning on or after 1 January 2016)
Amendments to IAS 16 Property, Plant and Equipment and IAS 41 Agriculture- Bearer Plants (applicable for annual periods
beginning on or after 1 January 2016)
Amendments to IAS 19 Employee Benefits – Employee Contributions (applicable for annual periods beginning on or after 1
February 2015)
Amendments to IAS 27 Separate Financial Statements - Equity Method (applicable for annual periods beginning on or after 1
January 2016)
Amendments to IFRS 10 Consolidated Financial Statements (applicable for annual periods beginning on or after 1 January 2016,
but not yet endorsed in the EU)
Amendments to IAS 28 Investments in Associates and Joint Ventures (applicable for annual periods beginning on or after 1
January 2016, but not yet endorsed in the EU)
Amendments to IFRS 11 Joint Arrangements (applicable for annual periods beginning on or after 1 January 2016)
Amendments to IAS 7 Statement of Cash Flows – Disclosure Initiative (applicable for annual periods beginning on or after 1
January 2017, but not yet endorsed in the EU)
Amendments to IAS 12 Income Taxes (applicable for annual periods beginning on or after 1 January 2017, but not yet endorsed
in the EU)
IFRS 9 Financial Instruments (applicable for annual periods beginning on or after 1 January 2018, but not yet endorsed in the EU)
IFRS 15 Revenue from Contracts with Customers (applicable for annual periods beginning on or after 1 January 2018, but not yet
endorsed in the EU)
IFRS 16 Leases (applicable for annual periods beginning on or after 1 January 2019, but not yet endorsed in the EU)
IFRS 14 Regulatory Deferral Accounts (applicable for annual periods beginning on or after 1 January 2016)
Amendments to IFRS 10 Financial Instruments and IAS 28 Investment in Joint Ventures (endorsement postponed indefinitely)
Reabold Resources Plc Report & Accounts
14
REABOLD RESOURCES PLC
Notes to the financial statements for the year ended 31 December 2015
_____________________________________________________________________________________
2.
Summary of significant accounting policies
Basis of accounting
The 2015 financial statements are prepared under International Financial Reporting Standards, as adopted for use by the European
Union.
The financial statements have been prepared on the going concern basis and historical cost basis, except that the following assets
and liabilities are stated at their fair value: financial instruments classified as fair value through the profit and loss.
The financial statements are presented in sterling, the currency of the primary economic environment in which the Company
operates and in which the majority of the Company’s transactions are denominated.
The principal accounting policies adopted are set out below.
Going concern
The financial statements have been prepared on the going concern basis. The Directors expect to be able to be able to obtain further
funding for the Company. However, there can be no guarantee that the required funds will be raised within the necessary timeframe
or on terms that will be acceptable to the Company.
Investments at fair value through profit or loss
Classification
The Company classifies its investments as financial assets at fair value through profit or loss ("financial assets"). The financial
assets are designated by the Company at fair value through profit or loss at inception. At the year end the Company did not class
any investments as financial assets at fair value through profit or loss.
Recognition
Purchases and sales of investments are recognised on the trade date – the date on which the Company commits to purchase or sell
the investments.
Measurement
Financial assets at fair value are initially recognised at cost, being the fair value of consideration given. Subsequent to initial
recognition, all financial assets at fair value through profit or loss are measured at fair value. Gains and losses arising from changes
in the fair value of the ‘financial assets at fair value’ category are presented in the Statement of Comprehensive Income in the
period in which they arise.
Fair value estimation
Marketable (Listed) Securities – Where an active market exists for the security, the value is stated at the bid price on the last trading
day in the period. Marketability discounts are not applied unless there is some contractual, governmental or other legally
enforceable restriction preventing realisation at the reporting date.
Unlisted Investments – Where the Company has investments in equity instruments that do not have a quoted price in an active
market and whose fair value cannot be reliably measured these are carried at historic cost.
Fair value hierarchy
IFRS 13 requires disclosure of fair value measurements by level of the following fair value hierarchy:
Level 1 - inputs are quoted prices (unadjusted) in active markets for identical assets and liabilities that the entity can readily observe;
Level 2 - inputs are inputs other than quoted prices included within Level 1 that are observable for the asset, either directly or
indirectly; and
Level 3 - inputs that are not based on observable market data (unobservable inputs).
Investments available for sale
Available for sale financial assets are non-derivatives that are either designated as available for sale or are not classified as loans
and receivables, held-to-maturity investments or financial assets at fair value through profit or loss.
Reabold Resources Plc Report & Accounts
15
REABOLD RESOURCES PLC
Notes to the financial statements for the year ended 31 December 2015
_____________________________________________________________________________________
2.
Summary of significant accounting policies (continued)
The company has an investment in unlisted shares that are not traded in an active market but that are classified as available for sale
financial and stated at fair value (because the directors consider that fair value can be reliably measured). Fair value is determined
in the manner described in note 5. Gains and losses arising from changes in fair value are recognised in other comprehensive
income and accumulated in the investments revaluation reserve with the exception of impairment losses, interest calculated using
the effective interest method and foreign exchange gains and losses on monetary assets, which are recognised directly in profit or
loss. Where the investment is disposed of or is determined to be impaired, the cumulative gain or loss previously recognised in the
investments revaluation reserve is reclassified to profit or loss.
Available for sale equity investments that do not have a quoted market price in an active market and whose fair value cannot be
reliably measured are measured at cost less any identified impairment losses at the end of each reporting period.
Taxation
The tax charge represents the sum of current and deferred tax.
Current tax payable is based on taxable profits for the year. Taxable profits differ from net profits as reported in the income
statement because it excludes items that are taxable or deductible in other years and items that are not taxable or deductible. The
Company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted at the balance sheet
date.
Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities
in the financial statements and the corresponding tax bases used in the computation of taxable profit, and is accounted for using
the liability method. Deferred tax liabilities are recognised for all temporary differences and deferred tax assets are recognised to
the extent that it is probable that taxable profits will be available against which temporary differences can be utilised.
The carrying amount of deferred tax assets is reviewed at each balance sheet date and reduced to the extent that it is no longer
probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax assets are
offset when there is a legally enforceable right to offset current tax assets against current liabilities and when deferred tax assets
and deferred tax liabilities relate to income taxes levied by the same tax authority on either the same taxable entity or different
taxable entity where there is an intention to settle on a net basis.
Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability or the asset is realised.
Borrowing costs
Unless borrowing costs are capitalised that are directly attributable to the acquisition construction or production of a qualifying
asset, borrowing costs are expensed in the period they are incurred. No borrowing costs were capitalised in the year (2014: Nil).
Currencies
Transactions in currencies other than Sterling are recorded at the rates of exchange prevailing on the dates of the transactions.
Monetary items in the statement of financial position are retranslated at the closing exchange rate at each statement of financial
position date, and the resulting translation differences are recorded in profit or loss.
Impairment
At each reporting date, the Company reviews the carrying amount of its tangible and intangible assets including investments to
determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the
recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible
to estimate the recoverable amount of an individual asset, the Company estimates the recoverable amount of the cash-generating
unit to which the asset belongs.
If the recoverable amount of an asset is estimated to be less than its carrying amount, the impairment loss is recognised as an
expense.
Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its
recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been
determined had no impairment loss been recognised for the asset. A reversal of an impairment loss is recognised as income
immediately.
Reabold Resources Plc Report & Accounts
16
REABOLD RESOURCES PLC
Notes to the financial statements for the year ended 31 December 2015
_____________________________________________________________________________________
2.
Summary of significant accounting policies (continued)
Financial instruments
Financial assets and financial liabilities are recognised in the Company’s statements of financial position when the Company has
become a party to the contractual provisions of the instrument.
Loans and other receivables
Loans and other receivables are recognised initially at fair value and subsequently measured at amortised costs using the effective
interest rate method, as reduced by appropriate provisions for estimated irrecoverable amounts less provision for impairment. A
provision for impairment is accounted for when management deems the specific trade receivable balance not to be collectable. The
amount of the impairment loss is recognised in the income statement
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and demand deposits, and other short-term deposits and liquid investments that
are readily convertible to a known amount of cash and are subject to an insignificant risk of changes in value.
Other financial liabilities
Other financial liabilities, including borrowings, are initially measured at fair value, net of transaction costs.
Other financial liabilities are subsequently measured at amortised cost using the effective interest method, with interest expense
recognised on the expected yield basis. The effective interest method is a method of calculating the amortised cost of a financial
liability and of allocating interest expense over the relevant period. The effective interest rate is the rate that exactly discounts
estimated future cash payments through the expect life of the expected financial liability, or, where appropriate, a shorter period,
to the net carrying amount on initial recognition.
Financial liabilities and equity
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into.
An equity instrument is any contract that creates a residual interest in the assets of the Company.
Trade payables
Trade payables are stated at their amortised cost less any discount or rebate received.
Dividends
Dividend distribution to the Company’s shareholders is recognised as a liability in the Company’s financial statements in the period
in which the dividends are approved by the Company’s shareholders.
Equity instruments
Equity instruments issued by the Company are recorded at the proceeds received, net of direct issue costs.
Capital redemption reserve
Where a company acquires its own shares out of free reserves, then a sum equivalent to the nominal value is transferred to a capital
redemption reserve.
Reabold Resources Plc Report & Accounts
17
REABOLD RESOURCES PLC
Notes to the financial statements for the year ended 31 December 2015
_____________________________________________________________________________________
2.
Summary of significant accounting policies (continued)
Critical accounting judgements and key sources of estimation uncertainty
The Directors consider the critical accounting estimates and judgements used in the financial statements and concluded that the
main areas of judgement are:
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the
application of policies and reported amounts of assets and liabilities, income and expenses. The estimates and associated
assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances,
the results of which form the basis of making judgements about carrying values of assets and liabilities that are not readily apparent
from other sources. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in
the period in which the estimate is revised if the revision affects only that period or in the period of the revision and future periods
if the revision affects both current and future periods.
The following are the critical accounting judgements, apart from those involving estimations (which are dealt with separately
below), that the directors have made in the process of applying the Company’s accounting policies and that have the most significant
effect on the amounts recognised in the financial statements.
(a) Critical judgements in applying the Company’s accounting policy
In the process of applying the Company’s accounting policies which are described above, management has not had to make
any further significant judgements on the amounts recognised in the financial statements.
(b) Key sources of estimation uncertainty
As the Company is now an investing company, the key source of estimation uncertainty is the valuation of unlisted investments.
3.
Segment analysis
The segmental analysis relates to the operations of the Company, as these are individual financial statements of the Company. The
Company has one reportable operating segment on the basis that it earns revenues and incurs expenses from one business activity;
being investing, and on the basis that it operates in one geographical location; being the United Kingdom. During the current year,
the Company did not generate any turnover from its investment activities, as no acquisition was completed during the reporting
period.
Reabold Resources Plc Report & Accounts
18
REABOLD RESOURCES PLC
Notes to the financial statements for the year ended 31 December 2015
_____________________________________________________________________________________
4.
Investments at fair value through profit & loss
For the period ended 31 December 2015
Opening cost
Additions at cost – cash
Additions at cost – in specie
Disposal proceeds
Net realised loss on disposal of investments
Closing portfolio cost
Net unrealised (loss)/gain on investments
Closing valuation
Net unrealised (loss)/gain on investments
Net realised loss on disposal of investments
Net capital (loss)/gain on fair value of financial assets designated
at fair value through profit or loss
Investment income
Total (losses)/gains on Financial Assets at fair value through
profit or loss
Level 1
£’000
-
-
-
-
-
-
-
-
-
-
-
-
-
Level 2
£’000
-
-
-
-
-
-
-
-
-
-
-
-
-
Level 3
£’000
-
-
-
-
-
-
-
-
-
-
-
-
-
Details of the additions and disposals can be found in the Chairman’s Statement and Strategic Report.
For the period ended 31 December 2014
Opening cost
Additions at cost – cash
Additions at cost – in specie
Disposal proceeds
Net realised loss on disposal of investments
Closing portfolio cost
Net unrealised (loss)/gain on investments
Closing valuation
Net unrealised (loss)/gain on investments
Net realised loss on disposal of investments
Net capital (loss)/gain on fair value of financial assets designated
at fair value through profit or loss
Investment income
Total (losses)/gains on financial Assets at fair value through
profit or loss
Level 1
£’000
-
610
-
(599)
(11)
-
-
-
-
(11)
(11)
6
(5)
Level 2
£’000
-
-
-
-
Level 3
£’000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Total
£’000
-
-
-
-
-
-
-
-
-
-
-
-
-
Total
£’000
-
610
-
(599)
(11)
-
-
-
-
(11)
(11)
6
(5)
Reabold Resources Plc Report & Accounts
19
REABOLD RESOURCES PLC
Notes to the financial statements for the year ended 31 December 2015
_____________________________________________________________________________________
5.
Investments available for sale
Opening
Additions at cost – cash
Additions at cost – in specie
Closing
2015
£’000
200
-
-
200
2014
£’000
-
50
150
200
Details of the additions can be found in the Chairman’s Statement and Strategic Report. The opinion of the Directors at the prior
period was that the fair value of this investment could not be reliably measured given the early stage of development of the entity.
The fair value can now be determined with reference to subsequent issue prices of convertible debentures by the company the
investment is in. This classifies the asset at Level 2 of the fair value hierarchy.
6.
Loss from operations
The result from operations has been arrived at after charging:
Auditors’ remuneration – audit of Company
Auditors’ remuneration – other services
Staff costs
7.
Staff costs
Staff employment costs were:
Wages and salaries
Social security costs
Other pension costs
2015
£’000
2014
£’000
11
-
48
10
-
24
2015
£’000
48
-
-
48
2014
£’000
24
-
-
24
During the year there were no employees (2014: nil) employed by the Company excluding directors in administration roles. The
staff costs during the year include the accrual of director fees in the amount of £24,000 which were not paid during the reporting
period.
8.
Directors’ remuneration
The emoluments (including pension contributions) paid to Directors during the year was as follows:
Executive Directors
Jeremy Edelman
Anthony Samaha
Salary & fees Compensation
for loss of
office
£’000
£’000
24
24
48
-
-
-
Pension
contribution
2015
Total
£’000
£’000
-
-
24
24
48
2014
Total
£’000
-
24
24
An accrual of £24,000 for directors which were unpaid during the reporting period has been made.
As at 31 December 2015, no Director was accruing benefits under a money purchase scheme (2014: none). At the year-end no
Director had any share options. Share options of directors who resigned in the prior years lapsed on their resignation.
Reabold Resources Plc Report & Accounts
20
REABOLD RESOURCES PLC
Notes to the financial statements for the year ended 31 December 2015
_____________________________________________________________________________________
9.
Finance income
Interest income
10.
Finance costs
Interest on loans and overdrafts
11.
Tax on profit on ordinary activities
Analysis of charge in year
Current tax:
UK corporation tax on profits/ (loss) of the year
Adjustments in respect of previous periods
Total current tax
Deferred tax:
Release of deferred tax asset
Origination and reversal of temporary differences
Total deferred tax
Total tax for the year
Factors affecting tax charge for the year:
2015
£’000
-
2015
£’000
-
2014
£’000
2
2014
£’000
3
2015
£’000
2014
£’000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
The tax assessed for the year is lower than the standard rate of corporation tax in the UK 23.25 % (2014: 23.25%).
Loss on ordinary activities before tax
Loss on ordinary activities multiplied by standard rate
of corporation tax in the UK of 20.0% (2014: 21.5%)
Effects of:
Expenses not deductible for tax purposes
Unrelieved tax losses
Total tax for the year
2015
£’000
(104)
2014
£’000
(118)
(20)
(25)
-
20
-
-
25
-
No deferred tax assets have been recognised (2014: nil)
The corporation tax rate was reduced from 21.5% to 20.0% on 1 April 2014. Thus the corporation tax rate for the year ended 31
December 2015 is 20.0%.
The company has unused tax losses of £1.7 million and capital losses of £2.5 million. The deferred tax asset for these losses,
amounting to £835,000 (2014: £815,000) has not been recognised as the timing of profits is uncertain.
Reabold Resources Plc Report & Accounts
21
REABOLD RESOURCES PLC
Notes to the financial statements for the year ended 31 December 2015
_____________________________________________________________________________________
12.
Loss per share
The calculations of the basic and diluted earnings per share are based on the following data:
Loss for the year
Loss for the purpose of basic earnings per share
Number of shares
Weighted average number of ordinary shares in issue during the year
Effect of dilutive options
2015
£’000
(104)
2014
£’000
(118)
(104)
(118)
Number
Number
251,682,611
-
207,177,116
-
Diluted weighted average number of ordinary shares in issue during the year
251,682,611
207,177,116
Loss per share
Basic and diluted loss per share (pence)
13.
Trade and other receivables
Other taxation and social security
(0.04)
(0.06)
2015
£’000
2014
£’000
1
1
1
1
Credit risk
The Company’s credit risk is primarily attributable to its trade receivables and cash balances. The credit risk on liquid funds is
limited because the counterparties are banks with high credit ratings assigned by international credit-rating agencies.
14.
Borrowings
Bank overdraft
2015
£’000
2014
£’000
-
-
-
-
During the previous reporting period, the Company entered into a stock margin service financing facility with Barclays Bank Plc
to provide a facility with an initial drawdown of circa £400,000 to support the Company's listed investment programme. The initial
term of the facility is 12 months, with interest payable quarterly at the TM (TomNext) rate applicable to low-volatility currency
plus 1.35 per cent. The facility may be repaid in whole or part without penalty prior to the expiry of the term. The balance owing
under the facility as at 31 December 2015 was £nil (2014: £nil).
Reabold Resources Plc Report & Accounts
22
REABOLD RESOURCES PLC
Notes to the financial statements for the year ended 31 December 2015
_____________________________________________________________________________________
15.
Share capital
2015
2015
2014
2014
Called up, allotted and fully paid
£’000 No of shares
£’000 No of shares
Ordinary shares
Opening 1st January, ordinary shares of 0.10 pence each
Placement of new ordinary shares of 0.10 pence each
Closing, 31st December, ordinary shares of 0.10 pence each
171
70
____
241
240,915,896
40,000,000
__________
280,915,896
171
70
____
241
170,915,896
70,000,000
__________
240,915,896
“A” Deferred Share
Opening, 1st January, “A” Deferred Share of 1.65 pence each
Closing, 31st December, “A” Deferred Share of 1.65 pence each
114
____
114
6,915,896
__________
6,915,896
114
____
114
6,915,896
__________
6,915,896
At 31st December 2014 no share options were outstanding (2014: nil).
On 23 June 2014, the Company issued 65,000,000 new ordinary shares of 0.1p each at a price of 0.5p per share raising £325,000
in funds to make investments in accordance with the Company’s investing policy and for working capital purposes.
On 23 June 2014, the Company issued 5,000,000 new ordinary shares of 0.1p each at a deemed price of 3p per share to Mogul
Ventures Corp (“Mogul”), as part of the consideration for the acquisition of 1,480,000 shares in Mogul.
On 18 September 2015, the Company issued 40,000,000 new ordinary shares of 0.1p each at a price of 0.5p per share raising
£200,000 in funds for working capital purposes.
As at 31 December 2015, the Company's total issued ordinary share capital was 280,915,896 ordinary shares of 0.1p each and
6,915,896 “A” Deferred Shares of 1.65 pence per share.
The holders of ordinary shares are entitled to one vote per share at the meetings of the company and to dividends as declared in
proportion to the amounts paid up on the ordinary shares. No shares are of the Company are currently redeemable or liable to be
redeemable at the option of the holder or the Company.
The holders of “A” Deferred Shares do not have any right to receive written notice of or attend, speak or vote at any general meeting
of the company, or to any dividend declared by the company. They may however be redeemed by the Company at any time at its
option for one penny for all the “A” Deferred Shares without obtaining sanction of such holders.
On 8 January 2016, the Company announced the placement of 40,000,000 ordinary shares at 0.5 pence per share to raise gross
proceeds of £200,000 to provide additional working capital for the Company. The funds in respect of this placement were
received prior to 31 December 2015.
16.
Employee benefit trust
At the Extraordinary General Meeting held on 29 May 2008 shareholders authorised the Company to purchase its own shares and
during the remainder of the 2008 financial year the Company entered into a number of transactions acquiring a total of 104,136
shares which it put into Treasury. The potential beneficiaries of the EBT included the executive directors and employees of the
Group and their respective families. In 2014 an Employee Benefit Trust (“EBT”) held 9,311 Ordinary Shares, which were disposed
and the EBT was dissolved. In the current year there is no treasury stock
Reabold Resources Plc Report & Accounts
23
REABOLD RESOURCES PLC
Notes to the financial statements for the year ended 31 December 2015
_____________________________________________________________________________________
17.
Trade and other payables
Trade payables
Accruals
Loans from related party
2015
£’000
2014
£’000
4
47
7
58
29
34
7
70
The Directors consider that the carrying amount of trade and other payables approximates to their fair value. All liabilities are due
within one year.
18.
Related party transactions
The Subscription agreements announced on 23 June 2014 totalling £325,000 for 65,000,000 new Ordinary Shares of 0.1p each in
the Company at a price of 0.5p per share, included a subscription by Saltwind, a company controlled by Jeremy Edelman, for
20,000,000 new Ordinary Shares.
During the previous reporting period, Saltwind provided funds for the payment of a creditor of the Company in the amount of
£7,260, on an interest free basis. As at 31 December 2015 the amount of £7,260 was payable to Saltwind. The fair value of this
loan is not materially different from the face value.
The directors are the key management of the Company (refer to note 7).
19.
Financial risk management
The Company’s operations expose it to a limited level of credit, foreign currency and liquidity risk. There is little financial risk
arising from the effects of changes in market prices of commodities based on its current activities. Interest rate risk exists on bank
and third party borrowings.
The Company does not use derivative financial instruments to manage interest rate costs, and no hedge accounting is thus applied.
Given the size of the Company, the Directors have not delegated the responsibility of monitoring financial risk management to a
sub-committee of the Board.
Price risk
Price risk arises from uncertainty about the future prices of financial instruments held within the Company’s portfolio. It represents
the potential loss that the Company might suffer through holding market positions in the face of market movements. The
investments in equity and fixed interest stocks of unquoted companies are not traded and as such the prices are more uncertain than
those of more widely traded securities. The Board’s strategy in managing the market price risk inherent in the Company’s portfolio
of equity investments is determined by the requirement to meet the Company’s investment objective. The directors manage these
risks by regular reviews of the portfolio within the context of current market conditions. Unquoted investments are valued as per
accounting policy in these financial statements. Regular reviews of the financial results, combined with close contact with the
management of these investments, provide sufficient information to support these valuations.
Liquidity risk
The Company actively maintains a treasury system that maintains a net credit position and is designed to ensure the Company have
sufficient available funds for operations and planned expansions.
Reabold Resources Plc Report & Accounts
24
REABOLD RESOURCES PLC
Notes to the financial statements for the year ended 31 December 2015
_____________________________________________________________________________________
19.
Financial risk management (continued)
Maturity of financial liabilities
The following table shows details the Company’s remaining contractual maturity for its non-derivative financial liabilities. The
maturity of the financial liabilities table has been drawn up based on the undisclosed cash flows based on the earliest date on which
the Company can be required to pay.
Within one year
2015
£’000
58
2014
£’000
70
Interest rate risk
The Company’s exposure to changes in interest rate risk relates primarily to interest-earning financial assets and interest-bearing
financial liabilities. Interest rate risk is managed by the Company on an ongoing basis with the primary objective of limiting the
extent to which net interest expense could be affected by an adverse movement in interest rates. Variable interest rates are based
on LIBOR plus a margin. The Company has assessed the impact of changes in interest rate risks as being immaterial, as all
borrowings have a fixed rate of interest.
Foreign currency risk
The Company incurs foreign currency risk on investments that are denominated in currencies other than Sterling. At present, the
Company does not have any formal policy for hedging against exchange exposure. The Company may, when necessary, enter into
foreign currency forward contracts to hedge against exposure from foreign currencies fluctuations. As at both 31st December 2014
and 31st December 2015 the Company has investments denominated in Canadian Dollar. Any movement in the Canadian Dollar
against Sterling will create a fair value gain or loss. The Company has assessed the impact of changes in exchange rates as not
being significant to the Company.
Capital risk management
The Company manages its capital to ensure the Company will be able to continue on a going concern on a long term basis while
ensuring the optimal return to shareholders and other stakeholders through an effective debt and equity balance.
The capital structure of the Company consists of equity attributable to equity holders of the Company, less cash and bank balances.
The Management reviews the capital structure and makes adjustment to it in the light of changes in economic conditions.
The Company’s capital employed is funded by equity attributable to equity shareholders of the Company and net debt as follows:
Bank borrowings
Less: cash and bank balances
Net cash
Total equity
Capital Employed
2015
£’000
-
(481)
(481)
624
143
2014
£’000
-
(196)
(196)
328
131
Other financial assets and liabilities
The notional amounts of financial assets and liabilities with a maturity of less than one year (including trade and other receivables,
cash and cash equivalents and trade and other payables) are assumed to approximate their fair value.
Reabold Resources Plc Report & Accounts
25
REABOLD RESOURCES PLC
Notes to the financial statements for the year ended 31 December 2015
_____________________________________________________________________________________
19.
Financial risk management (continued)
Categories of financial instruments
Available
for sale
investments
2015
£’000
-
-
200
__
200
Loans and
receivables/
other
financial
liabilities
2015
£’000
481
1
-
482
Total
2015
£’000
481
1
200
682
Available
for sale
investments
2014
£’000
-
-
200
200
Loans and
receivables/
other
financial
liabilities
2014
£’000
196
2
-
198
Total
2014
£’000
196
2
200
398
-
58
58
-
70
70
Financial assets:
Cash and cash equivalents
Loans and other receivables
Available for sale investments
Financial assets
Financial liabilities:
Other financial liabilities
20.
Post balance sheet events
On 8 January 2016, the Company announced the placement of 40,000,000 ordinary shares at 0.5 pence per share to raise gross
proceeds of £200,000 to provide additional working capital for the Company.
On 29 April 2016, Knowlton announced the termination of the Arrangement Agreement with Mogul to pursue another reverse
take-over transaction. Notwithstanding the termination of the transaction with Knowlton, the management and key stakeholders
in Mogul remain positive towards Mogul’s future in the public markets under improved market conditions.
21.
Ultimate controlling party
Jeremy Edelman is the ultimate controlling party.
Reabold Resources Plc Report & Accounts
26