7 May 2014 14:00
7 May 2014
Mercom Oil Sands Plc (AIM: MMO)
("the Company")
Result of AGM
The Company announces that, at the Annual General Meeting of the Company held earlier today, all the ordinary resolutions, including the resolution to amend the Company's investing policy, were duly passed. The special resolutions to dis-apply shareholders’ pre-emption rights and to authorise market purchases of the Company’s shares, were not passed.
The amended investing policy is set out below.
For further information, contact:
Northland Capital Partners Limited Edward Hutton / Matthew Johnson | +44 (0) 20 7382 1100 |
Cardew Group Shan Shan Willenbrock | +44 (0) 20 7930 0777 |
Investing Policy
To acquire a diverse portfolio of direct and indirect interests in the natural resources and energy sectors, with a focus on oil and gas.
Investments may be made in shares, or by the acquisition of assets (including the intellectual property) of a relevant business, or by entering into partnerships or joint venture arrangements, or in units in open ended investment companies, exchange traded funds, commodities and futures contracts. Such investments may result in the Company acquiring the whole or part of a company or project (which in the case of an investment in a company may be private or listed on a stock exchange, and which may be pre-revenue). Investments may also be in any type of financial instrument that the Board deems to be beneficial to increasing shareholder value.
The Company may be an active or a passive investor depending on the nature of the individual investments. Although the Company intends to be a medium to long-term investor, there is no minimum or maximum limit on the length of time that any investment may be held and therefore investments made for the short term cannot be ruled out.
There will be no limit on the number of projects which the Company may invest in, and the Company's financial resources may be invested in a number of propositions or in just one investment, which may be deemed to be a reverse takeover pursuant to Rule 14 of the AIM Rules. The Company will carry out an appropriate due diligence exercise on all potential investments and, where appropriate or required, with the assistance of professional advisers.
While the directors intend to take into account funds available for investment when assessing the amount of any investment and the spread of investments, it is not proposed that there be any maximum investment limit.
The Company will require additional funding as investments are made and new opportunities arise. The directors may offer new Ordinary Shares in the Company by way of consideration, as well as cash, thereby helping to preserve the Company's cash resources for working capital. The directors do not intend to acquire any cross-holdings in other corporate entities that have an interest in the Company's Ordinary Shares.
Investments will be long only (and the Company does not intend to trade in investments). The Company may in appropriate circumstances, issue debt securities or otherwise borrow money to complete an investment.
The Board's principal focus will be on achieving capital growth for shareholders.