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Statement Regarding Suspension

30 March 2016

 

Further to the announcements by the Company of 15 March 2016 and 29 March 2016 and notwithstanding that the Company has now published its final and interim results in accordance with AIM Rules 18 and 19, the Company has requested a suspension in trading of the Company's shares pending clarification of the Company's financial position.

As detailed in the previous announcements of 15 March and 29 March 2016, the Company's financial position remains difficult and uncertain. The Company is reliant upon the forbearance of its creditors and notably EthosEnergy Italia SpA ('Ethos'), whilst it seeks to realise proceeds from the sale of assets held for resale, being ancillary plant held by the Company together with the receipt of funds due from Rurelec PLC in relation to deferred consideration.

The Company has creditors totalling approximately £3.95m of which approximately £3.7m is owed to Ethos. The Company's principal assets are the balance of plant held on the balance sheet at £4m and receivables currently due of approximately £1.28m although the Company's auditors issued an adverse audit opinion in the financial statements for the year ended 31 March 2015 as a result of it believing there should be a provision against the carrying values of these assets.

The focus of the Company is to realise sufficient funds from these assets to repay all the Company's remaining creditors. However, there can be no guarantee that the Company will be successful in any sale or that the proceeds from the realisation of these assets will be sufficient to repay the creditors and the risk remains that the Company may need to be placed into administration.

Following the disposal of the Company's operating business on 29 February 2016, the Company is now an AIM Rule 15 cash shell and is seeking to conduct a reverse takeover.

 

For further information contact:

Mark Otto, Acting CEO, IPSA Group PLC
+27 (84) 219 2000

James Joyce / James Bavister, W H Ireland Ltd

+44 (0) 20 7220 1666

Riaan van Heerden, PSG Capital (Pty) Ltd.

+27 (0) 21 887 9602

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