Details on the 2007 public Offer proceeds and Right Issue can be summarized as follows:
At the conclusion of the exercise, the whole process was subjected to audit by the Security and Exchange Commission and was satisfactory.
PRESENT STATUS AND SITUATION OF THE COMPANY
On 31st December 2008, the company closed its factory and ended manufacturing activities, due to mounting loses arising from the high cost of operation caused mainly by infrastructural deficiencies.
With the creation of manufacturing, the bulk of the staff regrettably became redundant and painfully had to be disengaged.
Presently, the company in the short term is engaged in trading on imported tyres as a first step to attaining stability before venturing into other businesses.
STEPS MANAGEMENT IS TAKING TO AVOID POSSIBLE LOSS OF INVESTORS FUNDS
With the approval of the shareholders at an Extra Ordinary General Meeting of 22nd April, 2009 the Board has authorized Management to dispose off the surplus manufacturing assets arising from the closure of the factory with the aim of paying off the banks and other creditors as well as to raise funds for the future diversification of the company’s operations.
Also, as part of Management’s effort to ensuring quick recovery, it is in continuous dialogue with functionaries of the Federal Government towards seeking ways of addressing the problems that led to the closure of the factory.
Management’s effort is geared towards ensuring investors will not lose their investment.
Should you require any further clarifications, please feel free to contact the undersigned.
F.G. Obi, Group Finance Controller
Tel: 0803 718 2613