JSE-listed Firestone Energy and parent company ASX-listed Waterberg Coal Company (WCC) have requested an extension to the voluntary suspensions in the trading of their securities to allow time for WCC to finalise a proposed third-party funding arrangement to replace an existing funding facility with Standard Bank, which had been due for repayment on April 9.
The voluntary suspension has been in effect since March 19.
WCC states that the completion of discussions and documentation for the replacement funding represents a significant transaction and that the final terms of the proposal will impact on its ability to carry out its future objectives.
“Reinstatement of trading for securities at this time is likely to be materially prejudicial to our ability to successfully complete the complex funding transaction contemplated, which is critical to the our financial viability,” it says in a statement.
Standard Bank advises that it will maintain the existing facility on an “on demand”, rolling, daily basis to allow further time for negotiations with the third party to progress.