To date, only £12,000 of the placees share subscription has been settled, and, Conroy noted that the settlement date was 20 March 2020.
“The placee has reconfirmed to BHC its intention to settle in full this outstanding balance within a reasonable timeframe,” the company said in a statement.
Also, another investor has £25,000 outstanding settlement from its share subscription, and, similarly, it has reiterated its commitment.
The placing was arranged by Brandon Hill Capital (BHC). It comprised a £250,000 placing and the remainder came from a share subscription. New shares were sold to investors at 12p each (current market price: 7p).
Presently, the new shares have been issued but not distributed to the investors, instead the shares are held by BHC in London’s CREST settlement system (where they are designated to be settled on a delivery versus payment basis).
The company’s registrar is currently holding the share certificate.
“BHC has been in regular dialogue with both investors and reasonably expects settlement in full on the basis of assurances received from both parties,” Conroy said.
It added: “BHC continues to work with both investors to resolve the settlement issues that stem from the extraordinary circumstances in the financial markets at this current time.
“Given current economic uncertainties, there may however be a material risk that the full funds may not be received.”
Conroy told investors that, given the current coronavirus related restrictions on operations, it does not believe the delay in settlement will have any material impact on its working capital position or operational activities, assuming funds are forthcoming in the short term.