Graphite Explorer, New Energy Minerals Ltd (ASX: NXE) made an announcement on 23 January 2019, stated that its application to set aside the Arena statutory demand will not be heard before 21 March 2019.
As per the announcement, the mediation between the Company and Arena which was held on 18 January 2019, did not result in any form of settlement between the parties. As the parties have not resolved their disputes through mediation, the Companyâs application in the Supreme Court of Western Australia will proceed. The matter is next listed for directions on 31 January 2019.
Earlier in November 2018, the company had lodged an application to set aside the statutory demand by Arena Structured Private Investments (Cayman) LLC, arising from debts allegedly owed by the Company under the terms of the Unsecured Convertible Note Deed between the Company and Arena.
The Company had applied to set aside the statutory demand on the basis that it is defective by reason of its failure to separately particularize the interest, principal and other components comprising the total of Arenaâs claimed debt.Â Further, the company believes that there is a genuine dispute about whether the amounts claimed by Arena are due and payable. The Company believes that it is not liable to repay principal nor any termination payment claimed by Arena, as Arena has breached an essential condition of the Unsecured Convertible Note Deed by failing to pay Tranche 2B to the Company, in the amount of $1.805 million cash.
In FY 2018, the company incurred a loss from continuing operations of $20.04 million. As at 30 June 2018, the company had total current assets of $5.39 million and total current liabilities of $3.778 million. As at 30 June 2018, the company had net cash used in operating activities of $4.96 million.
In November 2018, the Company completed its strategic investment and joint venture transaction with Hong Kong-based investor UBezTT International Investment Holdings (BVI) Ltd. Through this strategic investment, the company has completed an A$1.5million placement in two tranches to UBezTT at $0.065 per share for a total of 23mn shares, which is a premium to the current share price.Â At the end of the September quarter, New Energy Minerals had net cash used in operating activities of $2,439k, the net cash from investing activities was $8k and net cash from financing activities was $1.95k. As at 30 September 2018 the company had cash and cash equivalents of $370k.
Today, the share price of the company increased by 12.5 percent and is trading close to lower level. Meanwhile, in the last six months, the share price of the company decreased by 74.74 percent as on 22 January 2019. NXEâs shares traded at $0.054 with a market capitalization of circa 7.24 million as on 23 January 2019 (AEST 4:00 PM).
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