Mosman Says Gem Acquisition Timeline Unclear On "Complicating Factors"

LONDON (Alliance News) - Mosman Oil & Gas PLC on Tuesday said there is "no clear timeline" for an ...

Alliance News 12 February, 2019 | 1:22PM
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LONDON (Alliance News) - Mosman Oil & Gas PLC on Tuesday said there is "no clear timeline" for an intended acquisition by Gem International Resources Inc.

Shares in Mosman were down 4.8% at 0.26 pence on Tuesday.

Gem is currently in talks with an unrelated third party concerning a possible acquisition and Mosman advised in September that Gem was "well advanced in finalising a letter of intent".

However, there are "a number of complicating factors" in the proposed acquisition that have necessitated an extended timeline and several key conditions that have not yet been met. It is currently hoped that the letter of intent will be signed in the current quarter.

Mosman expensed its USD76,443 investment in Gem in its financial 2018 report and removed Gem's previous board to seek a new direction for the company. Mosman Executive Chair John Barr is now one of the directors at Gem.

"Gem continues to work through and gradually resolve issues, that once completed should see a revitalisation, and enable Mosman to recover value associated with its original investment in and the subsequent loan to Gem," said Barr.

By Anna Farley; annafarley@alliancenews.com

Copyright 2019 Alliance News Limited. All Rights Reserved.

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Securities Mentioned in Article
Security Name Price Change (%) Morningstar Rating
Mosman Oil and Gas Ltd 0.47 GBX 3.30 -
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