Ascension Capital Limited (ACE) has released its half year results for the six months ended 30 September 2023.
The financial result of the company for the six months ended 30 September 2023 is a loss after taxation of NZ$86,370, largely made up of directors’ fees, NZX listing costs and legal and accounting costs. This is a net increase in costs of $2,984 compared to the 1st half of the previous year.
The operating cashflow requirements of $61,595 for the half year period were financed through an issue of 2,350,000 new ordinary fully paid shares in April 2023 at an issue price of $0.029 per share, to a number of wholesale investors.
The agreement with the directors to continue to forego the payment of directors’ fees until such time as the Company has sufficient funds to make such payments, continues.
There were no changes in the board of directors during the period.
Sean Joyce, a director of the Company, through one of his investment vehicles, continues to provide financial support to the Company to ensure that the Company is able to meet its cash flow requirements.
The Board is actively looking to identify a suitable business opportunity to invest in and/or acquire through a reverse takeover transaction (RTO). Discussions have been had with several potential acquisition parties, but none of those discussions have developed into a tangible transaction to date.
An RTO is a transaction structured such that the Company would acquire 100% of the business assets, or the shares in the company that owns the business assets, in consideration for the payment of cash and/or the issue of new shares in the Company, to the vendors, to fund the acquisition.
The new business acquired would then effectively become a subsidiary of the Company (the listed company), trading on the NZX Main Board. The stakeholders in the business acquired, would ultimately become shareholders in the Company as part of the RTO, and would have representation at the Board level as appropriate.
In conjunction with the RTO process, the Company would seek to raise additional growth capital to assist in funding the future growth of the business.
The Board is focusing on business opportunities that satisfy one or more of the following investment criteria:
- The business has excellent personnel and management.
- The business operates in an attractive and positive business sector.
- The business has a robust business model.
- The business has solid historical earnings, or alternatively has a sound business platform from which to implement its business plan and generate strong earnings in the future.
- The business owns proprietary intellectual property.
- The business has potential to grow organically, via acquisition, or through the further investment in capital plant.
- The business has the potential to scale internationally.
- The business would benefit from being able to raise additional capital on the market.
- Is likely to generate superior returns for the Company and its existing shareholders.
The Board continues to investigate all credible investment opportunities that may present themselves and are hopeful of having a transaction underway during the course of the current financial year.
We thank you for your continued patience and support and we look forward to providing you with an RTO transaction proposal to consider in the near future.
Keith Jackson
Chair