Spinnaker Opportunities Has 50 Potential Targets Amid Full Year Loss

LONDON (Alliance News) - Cash shell firm Spinnaker Opportunities PLC said Monday it was ...

Alliance News 16 April, 2018 | 1:55PM
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LONDON (Alliance News) - Cash shell firm Spinnaker Opportunities PLC said Monday it was reviewing 50 potential acquisitions between GBP5 and GBP30 million as it continues to keep costs a minimum on reporting its maiden full year results.

Between November 2016 and the end of December, Spinnaker generated a GBP190,000 loss on no revenue. This was primarily due to the GBP191,000 in administrative expenses.

"The operating costs of running the business prior to its first acquisition are being kept to the minimum required commensurate with full compliance and good governance," Spinnaker Chairman Andrew Morrison said. "To date, all of the work required for due diligence has been done by the management team in order to minimise cash costs and the directors have agreed that no fees will be payable to them for their ordinary duties prior to an acquisition."

During the period, Spinnaker raised net GBP1.2 million through the issue of 26.0 million. At the end of 2017 it had GBP1.1 million in cash. It had its initial public offering in May 2017.

The company was formed to acquire a business in the energy or industrial sectors. The firm has been focusing on companies in the GBP5.0 million to GBP30.0 million range.

"During the period under review, a total of approximately 50 target companies, businesses or assets were reviewed and more detailed due diligence was undertaken on a small number of these", Morrison said.

"The company's expertise is weighted to satisfy its corporate finance, accounting and administrative requirements until a project is identified and acquired," Morrison added. "Upon an acquisition, management will be appointed to the enlarged group with the requisite specialist technical management expertise."

"Investment conditions in early 2018 are generally favourable, particularly in oil and gas, where improved oil prices compared to recent years are lending support," Morrison added. "The geopolitical and macroeconomic backdrop is by no means without risk, but we remain optimistic and are working to deliver a suitable reverse takeover acquisition as soon as possible."

Shares in Spinnaker were untraded at 4.15 pence on Monday.

By Ahren Lester; ahrenlester@alliancenews.com; and, Dayo Laniyan; dayolaniyan@alliancenews.com.

Copyright 2018 Alliance News Limited. All Rights Reserved.

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Securities Mentioned in Article
Security Name Price Change (%) Morningstar
Rating
Spinnaker Opportunities PLC 4.65 GBX 0.00 -
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