In the joint renewal cautionary announcement released on the 9th of December 2019, Delta and Rebosis advised that:
“Subsequent to the announcements, the parties are continuing to engage major shareholders and funders to obtain support for a potential capital raise that should contribute to lowering gearing. Key stakeholders, and in particular with regards to the potential capital raise, are following their due process regarding the potential merger terms. While they have indicated their in-principle support for the potential merger, further information has been requested to complete their assessment. The information requested has been provided and once the process is concluded the parties will revert to the market with an update”
Cornwall Crescent, as the holder of 22.7% of the Delta shares, is concerned that the announcement gives the impression that it is involved in a process of engagement with Delta and its advisors in relation to the potential transaction and/or has indicated ‘in-principle’ support for the potential merger.
Neither is the case.
Cornwall Crescent has had limited engagements in relation to the potential merger and capital raise, at which a number of concerns were raised with Delta, and Cornwall Crescent is not currently in support of the potential merger.