The Kibo Energy PLC (LON: KIBO) share price dropped 9.09% after announcing that its UK-based multi-asset operator subsidiary Mast Energy Developments (MED) has extended the completion long-stop date for MED's first definitive and binding Joint Venture Agreement (JVA).
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The revised completion date is now expected to be around mid-October 2023. It will allow the JV investor consortium to complete the compulsory statutory process as detailed in the announcement made on 1 September 2023.
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MED remains confident that the transaction will be completed and continues to work towards this with the investor consortium. MED also published a separate announcement regarding the same issue that repeated what Kibo had said in its press release.
Investors are getting tired of the constant extensions MED and Kibo Energy granted to joint venture investors as doubts start lingering about whether the deal will be sealed soon. However, the latest extension was granted so the JV investors can complete the compulsory statutory process set out in the September announcement.
Although MED continues to work with the investor consortium and its board of directors has full confidence that the transaction will be completed, unless or until the first definitive and binding Joint Venture Agreement (JVA) has been completed, Seira Capital Ltd (Seira) remains contractually bound under the JVA and remains in breach of its obligations thereto.
If the investor consortium fails to complete the transaction around the latest completion extension date, MED will consider all its options, including but not limited to commencing legal action against Seira and the affected parties. The firm could also explore alternative investment opportunities.
Louis Coetzee, CEO of Kibo Energy, says: “Whilst the Company is clearly disappointed at these ongoing delays in finalising completion of the investment into MED, we remain in continuous dialogue with the investor consortium and continue to be assured by them of their commitment to make this investment and to complete the transaction as soon as possible.”
Pieter Krügel, CEO of MED, commented: “We remain confident that the investor consortium will be able to complete the transaction, and the board have also received written reassurance from the investor consortium in this regard.’
Kibo share price.
The Kibo Energy share price dropped 9.09% to trade at 0.050p, from Thursday’s closing price of 0.055p.
YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.