May 21, 2024
Stakeholders Query Lekoil Cayman over Suspension of Trading
LEKOIL signs Strategic Alliance Agreement with NAMCOR Exploration and Production
– By Godswill Odiong

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A group of Lekoil shareholders operating under the name Concerned Shareholders, has written to the company’s board of directors requesting to know what is being done to ensure that the suspension of trading in the company’s shares is lifted and avoid its imminent delisting.

It will be recalled that Lekoil Cayman Limited was suspended from trading the company’s Ordinary Shares on the Alternative Investment Market (AIM) under Rule 19 and 40 with effect from October 1, 2021, pending the publication of its Accounts.

The concerned stakeholders faulted the claim in the company’s Operational Update earlier provided indicating that “Anthony Hawkings, the interim Executive Chairman of the Company stated that despite the publication of the Company’s Accounts for the Year Ended 31st December 2020 (the “Accounts”), trading in its shares remains suspended under AIM rule 40 until the Company has clarified, for purposes of the AIM rules, its relationship with its Affiliate, Lekoil Nigeria Limited (“Lekoil Nigeria”)”.

The shareholder group is also curious as to why Lekoil (Cayman) Limited failed to publish its accounts by the regulatory deadline of 30th June 2021, but sought and obtained an extension till 30th September 2021.

The group believes the extension sought and granted was unnecessary as the accounts finally released in October 2021, were obviously ready since June 2021. It declared as untrue Lekoil Cayman’s claim that the delay was as a consequence of COVID-19.

It also faulted the statement in the same Operational Update regarding the intention to commence implementation of a Contractor Shares Arrangement to “enable the Company settle accrued but unpaid fees shares (as of 25th September 2020 – being the date of the AGM) to third party advisors or contractors who agreed to take part of their fees in ordinary shares.” The group argued that the term “Contractors” does not include directors,” it applies only to third party advisors.”

The concerned stakeholders reiterated the need for Lekoil Cayman directors to refrain from acting in ways that do not benefit the shareholders, but only the directors and worse, without the directors “obtaining new regulatory and/or shareholder approvals”.

This development is a fallout of Metallon’s sale of its Lekoil Cayman shares in September, 2021. That process rather bizarrely, remains shrouded in secrecy.

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