REG - Citius Resources PLC - Annual Results 30 April 2023 & Notice of AGM
22/08/2023 15:15
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RNS Number : 1175K Citius Resources PLC 22 August 2023
Citius Resources Plc
("Citius" or the "Company")
Annual Report and Financial Statements for the year ended 30 April 2023
The Board of Citius Resources Plc is pleased to announce its Annual Report and
audited financial results for the year ended 30 April 2023.
The Annual General Meeting will be held at 55 Athol Street, Douglas, Isle of
Man, IM1 1LA at 10.00 am on 15 September 2023.
The Annual Report, Notice of Annual General Meeting & Proxy form will be
posted to shareholders and available at the Company's website
https://citiusresources.co.uk/ (https://citiusresources.co.uk/)
Citius Resources Plc Cameron Pearce
Tel: +44 (0)1624 681 250
cp@pangaeaenergy.co.uk
Tavira Securities Limited Jonathan Evans
Tel: +44 (0)20 7330 1833
jonathan.evans@tavirasecurities.com
Shard Capital Partners Damon Heath
Tel: +44 (0)20 7186 9927
damon.heath@shardcapital.com
Chairman Statement
Dear Shareholders,
It is with pleasure that your director presents the 2023 Annual Financial
Report of Citius Resources Plc (the "Company").
The year saw the Company continue to pursue settlement of its transaction to
acquire AUC Mining (U) Limited, the holder of the Kamalenge Gold Project (the
"Acquisition") which is located in the Mubende Gold District in Uganda.
The Acquisition would constitute a Reverse Takeover under the listing rules
and accordingly, the Company would apply for the re-admission of its shares to
the Official List and Main Market of the London Stock Exchange.
The Kamalenge Gold Project is a highly exciting project given the exploration
work to date and indications that it may host a high-grade gold project with
the potential for near term production.
Winton Willesee
Non-Executive Chairman
22 August 2023
Strategic Report for the year ended 30 April 2023
The Directors present the Strategic Report of Citius Resources Plc for the
year ended 30 April 2023.
Business of the Company
The Company was incorporated on 15 April 2020 as a private company with
limited liability under the laws of England and Wales under the Companies Act
2006 with registered number 12557958.
The Company was formed to undertake an acquisition of a target company or
business. On 9 June 2022 the Company announced that it has entered into a
binding Heads of Terms with regard to the possible acquisition of 100% of the
share capital of AUC Mining (U) Limited ("AUC").
Business Strategy
The Company has identified the following criteria that it believes are
important in evaluating a prospective target company or business. The
Acquisition and any future acquisition will be long-term investments for the
Company. It will generally use these criteria in evaluating acquisition
opportunities. However, it may also decide to enter into the Acquisition with
a target company or business that does not meet the below criteria.
The Directors intend to take an active approach to completing the Acquisition
and to adhere to the following criteria, insofar as reasonably practicable:
· Geographic focus: The Company intends, but is not required to,
seek to acquire an exploration or production company or business with
operations in precious and base metals in Europe, Africa, and the Middle East
with: (i) strong underlying fundamentals and clear broad-based growth drivers;
(ii) a meaningful population and an identifiable market; (iii) established
financial regulatory systems; (iv) stable political structures; and (v) strong
or improving governance and anti-corruption ratings.
· Sector focus: The Company intends to search initially for
acquisition opportunities in the precious and base metals sector, but the
Company shall not be limited to such sector. The Company intends to seek
opportunities which are in pre-production at an exploration and/or development
stage. The Directors believe that opportunities exist to create value for
Shareholders through a properly executed, acquisition-led strategy in the
precious and base metals industry, however the Directors will consider other
industries and sectors where they believe that value may be created for
Shareholders.
· Identifiable routes to value creation: The Company intends, but
is not required to, seek to acquire a company or business in respect of which
the Company can: (i) play an active role in the optimisation of strategy and
execution which for opportunities in pre-production would enable the Company
to create value; (ii) enhance existing management capabilities through the
Directors' proven management skills and depth of experience; (iii) affect
operational changes to enhance efficiency and profitability; and (iv) provide
capital to support significant, credible, growth initiatives.
· Management of the Acquisition: The Acquisition may be made by
direct purchase of an interest in a company, partnership or joint venture, or
a direct interest in a project, and can be at any stage of development.
Following the completion of the Acquisition, the Directors will work in
conjunction with incumbent management teams to develop and deliver a strategy
for performance improvement and/or strategic and operational enhancements.
The Directors believe that their broad, collective experience, together with
their extensive network of contacts, will assist them in identifying,
evaluating and funding suitable acquisition opportunities, particularly in the
precious and base metals sector, where the Directors believe that their
experience will enable value creation. External advisers and professionals may
be engaged as necessary to assist with sourcing and due diligence of
prospective acquisition opportunities. The Directors may consider appointing
additional directors with relevant experience if the need arises.
Any evaluation relating to the merits of a particular Acquisition will be
based, to the extent relevant, on the above factors as well as other
considerations deemed relevant to the Company's business objective by the
Directors. In evaluating a prospective target company or business, the Company
expects to conduct a due diligence review which will encompass, among other
things, meetings with incumbent management and employees, document reviews,
inspection of facilities, as well as a detailed review of financial and other
information which will be made available. The time required to select and
evaluate a target company or business and to structure and complete the
Acquisition, and the costs associated with this process, are not currently
ascertainable with any degree of certainty.
The Company expects that the Acquisition will be to acquire a controlling
interest in a target company or business. The Company (or its successor) may
consider acquiring a controlling interest constituting less than the whole
voting control or less than the entire equity interest in a target company or
business if such opportunity is attractive; provided, the Company (or its
successor) would acquire a sufficient portion of the target entity such that
it could consolidate the operations of such entity for applicable financial
reporting purposes. Future complementary acquisitions may be non-controlling.
The determination of the Company's post-Acquisition strategy and whether any
Directors will remain with the combined company and, if so, on what terms,
will be made following the identification of the target company or business
but at or prior to the time of the Acquisition.
Results for the year and distributions
The results are set out in the Statements of Comprehensive Income. The total
comprehensive loss attributable to the equity holders of the Company for the
year was £444,287(2022: £259,694).
The Company paid no distribution or dividends during the year.
Key performance indicators
At this stage in its development, the Company is focusing on the evaluation of
various resources projects. As and when the Company executes its first
substantial acquisition, financial, operational, health and safety and
environmental KPIs may become relevant and will be measured and reported as
appropriate. As such the only KPI the Company monitors is whether it can
successfully identify and secure an investment opportunity.
Social, Environmental and Governance
The Company is in an early state of acquiring a mining company. Further
consideration will need to be given to the Company's Social and Environmental
issues once the acquisition is completed.
Diversity and inclusion
The Company is a shell company and therefore, it is exempt of complying with
the Diversity and Inclusion rule.
Position of Company's Business
As at 30 April 2023 the Company's statement of Financial Position shows net
assets totalling of £292,877 (2022: £737,163). The Company has minimal
liabilities and is considered to have a positive cash position at the report
date.
Employees
The Board of Directors (the "Board") contains personnel with a good history of
running businesses that have been compliant with all relevant laws and
regulations and there have been no instances of non-compliance in respect of
environmental matters.
At present, there are no female Directors in the Company. The Company has
one executive director and two non-executive directors.
Principal risks and uncertainties
The Company operates in an uncertain environment and is subject to a number of
risk factors. The Directors consider the following risk factors to be of
particular relevance to the Company's activities and to any investment in the
Company. It should be noted that the list is not exhaustive and that other
risk factors not presently known or currently deemed immaterial may apply.
Issue Risk/Uncertainty Mitigation
Unproven business model The Company is a newly formed entity with no operating history. Although the The management team has experience in acquiring, investing in and/or managing
Company announced on June 2022 that it has entered into a binding Heads of companies in the sector. External advisers with specific related knowledge and
Terms with regard to the possible acquisition of 100% of the share capital of experience have been brought in to support the Board.
AUC Mining (U) Limited ("AUC"), there is a risk that the acquisition might
not be completed or that the acquisition might not create value for
shareholders.
The Company relies on the experience and talent of its management and advisers The Company is dependent on the Directors to identify potential acquisition All members of the Board have shareholdings in the Company and the one
opportunities and to execute an acquisition and the loss of the services of Executive Director has a significant shareholding in the Company.
the Directors could materially adversely affect the Company's strategy or
ability to deliver upon it in a timely manner or at all.
The Company is unable to complete any acquisitions The Company may be unable to complete an acquisition in a timely manner or at The Board is clear that all acquisitions and investments completed by the
all or to fund the operations of the target business if it does not obtain Company will provide substantial returns for shareholders which will support
additional funding following completion of an acquisition. the funding requirements.
Raising funding The Company may need to raise substantial additional capital in the future to It is anticipated that a reverse acquisition will take place and that funds
fund any acquisition and future revenues, taxes, capital expenditures and will be raised for the enlarged business in conjunction with the acquisition.
operating expenses will all be factors which will have an impact on the amount The Company monitors its cash requirements carefully and the net proceeds from
of additional capital required. Any additional equity financing may be the share issues have been conserved as much as possible pending completion of
dilutive to Shareholders and debt financing, while widely available, may an acquisition.
involve restrictions on financing and operating activities.
The Company may be subject to changes in regulation affecting the minning The Company may be subject to regulatory risks, in particular competition, The Company monitors legislative and regulatory changes and alters its
sector. data, and publishing regulations following an acquisition. business practices where appropriate. In the event that the Company becomes
subject to specific regulation regarding its activities either before or after
an acquisition, the Company will put in place such procedures as are necessary
to ensure it complies with such regulation.
Financial risk management
The Company's principal financial instruments comprise cash balances, accounts
payable and accounts receivable arising in the normal course of its
operations.
The Company's objectives when managing capital are to safeguard the Company's
ability to continue as a going concern in order to provide returns for
shareholders and benefits for other stakeholders and to maintain an optimal
capital structure to reduce the cost of capital.
In order to maintain or adjust the capital structure, the Company may adjust
the amount of dividends paid to shareholders, return capital to shareholders,
issue new shares or sell assets to reduce debt.
As at 30 April 2023 there is no significant exposure to liquidity or price
risk, the only credit risk applicable is over the cash balance which is held
with a reputable bank.
Section 172 Statement
Under section 172 of the Companies Act 2006 ("Section 172"), a director of a
company must act in a way that they consider, in good faith, and would most
likely promote the success of the company for the benefit of its members as a
whole, taking into account the non-exhaustive list of factors set out in
Section 172.
Section 172 also requires directors to take into consideration the interests
of other stakeholders set out in Section 172(1) in their decision making.
The Company, as a special purpose acquisition vehicle seeking an acquisition
that: has yet to complete an acquisition; has no employees; and has a Board
and business which came together in conjunction with the Company's listing on
the LSE Main Market in August 2021, has had relatively little interaction with
its members and internal stakeholders during the period from Admission to 30
April 2022 (the "Reporting Period"). The Board believes they have acted on the
way most likely to promote the success of the Company for the benefit of its
members as a whole, as required by section 172.
It should be noted that due to the early stage of the Company's development,
the Board also deems the Company's impact on external stakeholders to have
been minimal during the Reporting Period. Engagement with our members plays an
essential role throughout our business. We are cognisant of fostering an
effective and mutually beneficial relationship with our members. Our
understanding of our members is factored into boardroom discussions and
decisions regarding the potential long-term impacts of our strategic
decisions.
Post the Reporting Period end, the Directors have continued to have regard to
the interests of the Company's stakeholders, including the potential impact of
its future activities and acquisition strategy on the community, the
environment and the Company's reputation, when making decisions. The Directors
also continue to take all necessary measures to ensure the Company is acting
in good faith and fairly between members and is promoting the success of the
Company for its members in the long term.
As outlined above, the Company did not retain any employees during the
Reporting Period and therefore this Section 172 statement does not make
reference to how we consider their interests. The Company will monitor the
need to incorporate the interests of employees in its decision making as the
Company grows.
The table below acts as our Section 172 statement by setting out the key
stakeholder groups, their interests and how the Company engages with them.
Given the importance of stakeholder focus, long-term strategy and reputation
to the Company, these themes are also discussed throughout this Annual Report.
Stakeholder Their interests How we engage
Investors · Comprehensive review of financials · Regular reports and analysis on investors and shareholders
· Business sustainability · Annual Report
· High standard of governance · Company website
· Success of the business · Shareholder circulars
· Ethical behaviour · AGM
· Awareness of long-term strategy and direction · RNS announcements
· Press releases
Regulatory bodies · Compliance with regulations · Company website
· Company reputation · RNS announcements
· Insurance · Annual Report
· Direct contact with regulators
· Compliance updates at Board Meetings
· Consistent risk review
Partners · Business strategy · Meetings and negotiations
· Application of acquisition strategy · Reports and proposals
· Dialogue with third party stakeholders where appropriate
The Company had no trading activity during the year ended.
The Company follows international best practice on environmental aspects of
our work.
This report was approved and authorised for issue by the board and signed on
its behalf by:
Cameron Pearce
Director
22 August 2023
Directors' Report for the year ended 30 April 2023
Cameron Pearce (Chief Executive Officer)
Cameron Pearce is an Australian citizen and has extensive professional and
management experience in both the Australian and United Kingdom finance
industries. Providing corporate, strategic, financial and advisory assistance
to private and public companies in both Australia and the United Kingdom. With
over twenty years of experience in senior financial and management positions
he brings a wealth of knowledge in both publicly listed and private
enterprises. Providing partnerships in Australia, Europe, Asia, Africa and
Central America.
Mr Pearce is a member of the Australian Institute of Chartered Accountants. He
is currently a Director at Blencowe Resources plc
(https://blencoweresourcesplc.com/) , and Stallion Resources plc
(https://www.stallionresources.com/) . He was previously Chairman at Emmerson
plc (https://www.emmersonplc.com/) and CEB Resources plc and a Director at
Magnolia Resources Limited and Polish Coal Resources plc.
Winton William Willesee (Non-Executive Chairman)
Winton Willesee is an experienced company director with particular experience
with publicly listed companies.
Mr Willesee has considerable experience with publicly listed and other
companies over a broad range of industries having been involved with many
successful ventures from early stage through to large capital development
projects.
Mr Willesee is also currently director the following ASX listed
companies; Nanollose Limited, a company developing a unique and patented
eco-friendly fibre for the clothing industry and other uses, Neurotech
International Limited, a company researching and developing treatments for
neurological disorders, OneClick Life Limited, a fintech business, and Bridge
SaaS Limited, a SaaS business in the employment and NDIS industries. Mr
Willesee is also a director of Metals One Plc, a UK company listed on the AIM
Market.
He is also a Fellow of the Financial Services Institute of Australasia, a
Fellow of the Governance Institute of Australia and the Institute of Chartered
Secretaries and Administrators. Also, a Graduate member of the Australian
Institute of Company Directors, and a Member of CPA Australia.
Mr Willesee has a Master of Commerce, a Post-Graduate Diploma in Business
(Economics and Finance). Additionally, Graduate Diplomas in Applied Finance
and Investment, Applied Corporate Governance, Education and a Bachelor of
Business.
Daniel Rootes (Non-Executive Director)
Daniel is based in Perth, Australia and has 10 years of experience working in
the Finance industry. Having extensive experience with hedge funds, family
offices and wealth managers and road-showing companies in Singapore and Hong
Kong. This experience provides Citius Resources Plc excellent exposure into
Asia corporately and to future investors.
Over the past 5 years, Daniel has spent his time
marketing listed companies to investors. During this period he
has built up a strong network and developed relationships with corporate
advisers, wealth managers, mainstream media and marketing
companies striving to get the best results. Prior to that,
he worked for Colonial First State in Sydney, executing trades for some of
the largest funds in Australia.
The Directors present their report with the audited financial statements for
the year ended 30 April 2023. A review of the business and results of the
Company for the year is contained in the strategic report, which should be
read in conjunction with this report.
Directors
The Directors who held office during the year and to the date of this report,
together with details of their interest in the shares of the Company at 30
April 2023 and the date of this report were:
Number of Ordinary Number of Share Options
Shares
Cameron Pearce 6,000,000 950,000
Daniel Rootes 1,000,000 950,000
Winton Willesee 3,000,000 950,000
Details of the Directors' fees are given in note 6 to the accounts.
Directors' indemnities
As the Company has no trading at the moment, there is not a third-party
indemnity policy in place at the date of this financial statements.
Going Concern
The Directors have reviewed the Company's ongoing activities, including its
future intentions in respect of acquisitions. Having regard to the Company's
existing working capital position and the expected capital to be raised at the
time of the acquisition, the Directors are of the opinion that the Company has
adequate resources to enable it to continue in existence for a period of at
least 12 months from the date of these financial statements. If the
acquisition was to be delayed or not to take place, the Directors believe that
further capital can be raised during the year.
Corporate Governance
The Governance report forms part of the Directors' report.
Policy for new appointments
Without prejudice to the power of the Company to appoint any person to be a
Director pursuant to the Articles the Board shall have power at any time to
appoint any person who is willing to act as a Director, either to fill a
vacancy or as an addition to the existing Board, but the total number of
Directors (other than alternate directors) must not be less than two and must
not be more than 15 in accordance with the Articles. Any Director so appointed
shall hold office only until the annual general meeting of the Company next
following such appointment and shall then be eligible for re-election but
shall not be taken into account in determining the number of Directors who are
to retire by rotation at that meeting. If not re-appointed at such annual
general meeting, he shall vacate office at the conclusion thereof.
Rules for amendment of articles
Directors cannot alter the Company's Articles unless a special resolution is
approved by the shareholders. A special resolution requires at least 75% of a
company's members to vote in favour for it to pass.
Substantial shareholders
No single person directly or indirectly, individually or collectively,
exercises control over the Company. The Directors are aware of the following
persons, who had an interest in 3% or more of the issued ordinary share
capital of the Company as at 31 July 2023:
% of issued share capital of the Company
Shareholder
Jim Nominees Limited 31.95%
HSBC Global Custody Nominee (UK) Limited 13.87%
James Brearley Crest Nominees Limited 8.48%
Azalea Family Holdings Pty Ltd 6.94%
Pershing Nominees Limited 7.44%
West End Ventures Pty Ltd 3.85%
Peel Hunt Holdings Limited 3.78%
Financial risk management
The Company's major financial instruments include bank balances, trade and
other payables and accrued expense. Details of these financial instruments are
disclosed in respective notes. The risks associated with these financial
instruments, and the policies on how to mitigate these risks are set out
below. The management manages and monitors these exposures to ensure
appropriate measures are implemented on a timely and effective manner.
Greenhouse Gas (GHG) Emissions
The Company is aware that it needs to measure its operational carbon footprint
in order to limit and control its environmental impact. However, given the
very limited nature of its operations during the year under review, it has not
been practical to measure its carbon footprint.
In the future, once trading has commenced following an acquisition, the
Company will measure the impact of its direct activities, as the full impact
of the entire supply chain of its suppliers cannot be measured practically.
Statement of Directors' responsibilities
The Directors are responsible for preparing the Directors' Report and the
Financial Statements in accordance with applicable law and regulations. In
addition, the Directors have elected to prepare the financial statements in
accordance with UK-adopted International Accounting Standards ("IFRS") and the
Companies Act 2006.
The Financial Statements are required to give a true and fair view of the
state of affairs of the Company and of the profit or loss of the Company for
that year.
In preparing these Financial Statements, the Directors are required to:
· select suitable accounting policies and then apply them consistently.
· present information and make judgements that are reasonable, prudent
and provides relevant, comparable and understandable information.
· provide additional disclosures when compliance with the specific
requirements in IFRS is insufficient to enable users to understand the impact
of particulars transactions, other events and conditions on the entity's
financial position and financial performance; and
· make an assessment of the Company's ability to continue as a going
concern.
The Directors are responsible for keeping adequate accounting records that are
sufficient to show and explain the Company's transactions and disclose with
reasonable accuracy at any time its financial position of the Company to
enable them to ensure that the financial statements comply with the
requirements of the Companies Act 2006. They have general responsibility for
taking such steps as are reasonably open to them to safeguard the assets of
the Company and to prevent and detect fraud and other irregularities.
The Directors are responsible for the maintenance and integrity of the
corporate and financial information included on the Company's website.
Legislation governing the preparation and dissemination of financial
statements may differ from one jurisdiction to another.
We confirm that to the best of our knowledge:
· the financial statements, prepared in accordance with the
UK-adapted International Accounting Standards and the Companies act 2006, give
a true and fair view of the assets, liabilities, financial position and profit
or loss of the Company for the period;
· the Directors' report includes a fair review of the development
and performance of the business and the position of the company, together with
a description of the principal risks and uncertainties that they face;
· the annual report and financial statements, taken as a whole, are
fair, balanced and understandable and provide the information necessary for
shareholders to assess the company's performance, business model and strategy.
Dividends
Directors do not recommend a final dividend (2022: nil).
Embed effective risk management, considering both opportunities and threats,
throughout the organisation.
The Directors are responsible for maintaining the Company's systems of
controls and risk management in order to safeguard its assets.
Risk is monitored and assessed by the Board who meet regularly and are
responsible for ensuring that the financial performance of the Company is
properly monitored and reported. This process includes reviews of annual and
interim accounts, regulatory market announcements, internal control systems,
procedures and accounting policies.
The Board receives guidance from FIM Capital Limited, the Administration to
the Company, covering updates to relevant legalisation and rules to ensure
they remain fully informed and able to make informed decisions.
Subsequent events
Please see note 16 for details of the Company's subsequent events.
Auditors
The auditors, Crowe U.K LLP, have expressed their willingness to continue in
office and a resolution to reappoint them will be proposed at the Annual
General Meeting.
Disclosure of Information to Auditors
So far as the Directors are aware, there is no relevant audit information of
which the Company's auditors are unaware, and each Director has taken all the
steps that he ought to have taken as a director in order to make himself aware
of any relevant audit information and to establish that the Company's auditors
are aware of that information.
This report was approved and authorised for issue by the Board and signed on
its behalf by:
Cameron Pearce
Director
22 August 2023
Directors' Remuneration Report for the year ended 30 April 2023
Dear Shareholders,
On behalf of the Board, I am pleased to present our Remuneration Report. It
has been prepared in accordance with the requirements of The Large and
Medium-sized Companies and Groups (Accounts and Reports) (Amendment)
Regulations 2013 (the Regulations) and, after this introductory letter, is
split into two areas: the Remuneration Policy and the Annual Report on
Remuneration.
Citius Resources Plc was incorporated on 15 April 2020 and was admitted to the
Official List and to trading on the Main Market of the London Stock Exchange
on 25 August 2021. Since the listing, the Company has been a cash shell
seeking to make acquisitions in the mining sector.
At present the Company has three directors, one executive and two
non-executives, and no employees. We outlined in our Admission prospectus that
prior to completing an acquisition the directors will be paid nominal annual
amounts of £36,000 for executive directors and £6,000 for non-executive
directors until such time the Company completes its first acquisition. No
other remuneration has been paid or will be paid during this initial period.
While the Company is a cash shell and has limited remuneration arrangements,
it is required to comply with the Regulations. Given the date of the Company's
incorporation and the limited nature of the Company's remuneration
arrangements, much of the Regulations are not applicable and we have stated
this in the relevant sections of this report. The Remuneration Report will be
put to an advisory resolution.
Until the Acquisition is made, the Company will not have a nomination
committee. The Board as a whole will instead review its size, structure and
composition, the scale and structure of the Directors' fees (taking into
account the interests of Shareholders and the performance of the Company).
Following the Acquisition, the Board intends to put in place a nomination
committee.
I look forward to setting out a more detailed policy once we are in a position
to complete our first acquisition.
Cameron Pearce
Director
22 August 2023
Corporate Governance
As at the date of this Document, the Company complies with the corporate
governance regime as set out below.
The Company intends to voluntarily observe the requirements of the UK
Corporate Governance Code, save as set out below. As at the date of this
Document the Company is, and at the date of Admission will be, in compliance
with the UK Corporate Governance Code with the exception of the following:
· Given the composition of the Board, certain provisions of the UK
Corporate Governance Code (in particular the provisions relating to the
division of responsibilities between the Chairman and chief executive and
executive compensation), are considered by the Board to be inapplicable to the
Company.
· In addition, the Company does not comply with the requirements of
the UK Corporate Governance Code in relation to the requirement to have a
senior independent director and the Board's committees will not, at the
outset, have three independent non-executive directors.
· The UK Corporate Governance Code also recommends the submission
of all directors for re-election at annual intervals. No Director will be
required to submit for re-election until the first annual general meeting of
the Company following the Acquisition.
Until the Acquisition is made, the Company will not have nomination,
remuneration, audit or risk committees. The Board as a whole will instead
review its size, structure and composition, the scale and structure of the
Directors' fees (taking into account the interests of Shareholders and the
performance of the Company), take responsibility for the appointment of
auditors and payment of their audit fee, monitor and review the integrity of
the Company's financial statements and take responsibility for any formal
announcements on the Company's financial performance. Following the
Acquisition, the Board intends to put in place nomination, remuneration, audit
and risk committees.
During the year, the members of the Board attend the following Board meetings;
Member Meetings attended
Cameron Pearce Executive Director 3
Daniel Rootes Non-Executive Director 2
Winton Willesee Non-Executive Director 3
*Daniel Rootes was represented by a non-member of the Board during one of the
Board meetings.
As at the date of this Document, the Board has a share dealing code that
complies with the requirements of the Market Abuse Regulations. All persons
discharging management responsibilities (comprising only ofthe Directors at
the date of this Document) shall comply with the share dealing code from the
date of Admission.
Following the Acquisition and subject to eligibility, the Directors may, in
future, seek to transfer the Company from a Standard Listing to either a
Premium Listing or other appropriate listing venue, based on the track record
of the company or business it acquires, subject to fulfilling the relevant
eligibility criteria at the time. However, in addition to or in lieu of a
Premium Listing, the Company may determine to seek a listing on another stock
exchange. Following such a Premium Listing, the Company would comply with the
continuing obligations contained within the Listing Rules and the Disclosure
Guidance and Transparency Rules in the same manner as any other company with a
Premium Listing.
Voluntary compliance with Listing Rules
The Company will comply with the Listing Principles set out in Chapter 7 of
the Listing Rules at Listing Rule 7.2.1 which apply to all companies with
their securities admitted to the Official List. In addition, the Company will
also comply with the Listing Principles at Listing Rule 7.2.1A notwithstanding
that they only apply to companies which obtain a Premium Listing on the
Official List. Therefore, the Company shall:
· take reasonable steps to enable its directors to understand their
responsibilities and obligations as directors;
· act with integrity towards its shareholders and potential
shareholders;
· ensure that each class of shares that is admitted to trading
shall carry an equal number of votes on any shareholder vote. The Company
currently only has one class of Shares and the Articles which are summarized
in paragraph 7 of Part VIII, confirms that each Share carries the right to
vote;
· ensure that it treats all holders of the same class of shares
equally in respect of the rights attaching to those shares; and
· communicate information to its shareholders and potential
shareholders in such a way as to avoid the creation or continuation of a false
market in those shares.
· Opinion
We have audited the financial statements of Citius Resources Plc (the
"Company") for the year ended 30 April 2023 which comprise the Statement of
comprehensive income, Statement of financial position, Statement of changes in
equity, Statement of cash flow and notes to the financial statements,
including significant accounting policies. The financial reporting framework
that has been applied in their preparation is applicable law and UK-adopted
International Accounting Standards.
In our opinion, the financial statements:
· give a true and fair view of the state of the company's affairs
as at 30 April 2023 and of its loss for the year then ended;
· have been properly prepared in accordance with UK-adopted
International Accounting Standards; and
· have been prepared in accordance with the requirements of the
Companies Act 2006.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing
(UK) (ISAs (UK)) and applicable law. Our responsibilities under those
standards are further described in the Auditor's responsibilities for the
audit of the financial statements section of our report. We are independent of
the Company in accordance with the ethical requirements that are relevant to
our audit of the financial statements in the UK, including the FRC's Ethical
Standard as applied to listed public interest entities, and we have fulfilled
our other ethical responsibilities in accordance with these requirements. We
believe that the audit evidence we have obtained is sufficient and appropriate
to provide a basis for our opinion.
Material uncertainty related to going concern
We draw attention to note 2.2 in the financial statement, which indicates that
the Company has to date not completed the proposed RTO of AUC Mining Limited,
to which the Company has advanced funds of £249,341 If the proposed RTO
does not complete and the target is unable subsequently to make timely
reimbursement of amounts advanced to it, further working capital will be
required in order to fund the Company's operating costs for at least 12
months. If the proposed RTO does complete, further working capital will be
required in order to fund the operations of the enlarged group.
The directors believe that additional capital can be raised in either
eventuality and that, once the proposed RTO has completed, the Company will be
in the position to raise sufficient capital to bring the acquired mining
project into production. At the date of approval of these financial
statements the availability of additional capital is not guaranteed and this
represents a material uncertainty in relation to the Company's funding
arrangements that may cast significant doubt over the Company's ability to
continue as a going concern.
Our opinion is not modified in respect of this matter.
In auditing the financial statements, we have concluded that the directors'
use of the going concern basis of accounting in the preparation of the
financial statements is appropriate. Our evaluation of the directors'
assessment of the Company's ability to continue to adopt the going concern
basis of accounting included:
· Obtaining management's going concern assessment and challenging,
where appropriate, the assumptions used;
· Testing the mathematical accuracy of the model used by management in
their assessment;
· Considering the reasonableness of the model, including comparison to
actual results achieved in the year and the evaluation of downside
sensitivities;
· Considered the liquidity of existing assets on the statement of
financial position; and
· Discussing with management and evaluating their assessment of the
company's liquidity requirement.
Our responsibilities and the responsibilities of the directors with respect to
going concern are described in the relevant sections of this report.
Overview of our audit approach
Materiality
In planning and performing our audit we applied the concept of materiality. An
item is considered material if it could reasonably be expected to change the
economic decisions of a user of the financial statements. We used the concept
of materiality to both focus our testing and to evaluate the impact of
misstatements identified.
Based on our professional judgement, we determined overall materiality for the
financial statements as a whole to be £8,200 (2022: £15,000), based on 2% of
total assets. We use a different level of materiality ('performance
materiality') to determine the extent of our testing for the audit of the
financial statements. Performance materiality is set based on the audit
materiality as adjusted for the judgements made as to the entity risk and our
evaluation of the specific risk of each audit area having regard to the
internal control environment. We determined performance materiality to be
£5,700 (2022: £10,500).
Where considered appropriate performance materiality may be reduced to a lower
level, such as, for related party transactions and directors' remuneration.
We agreed with the Board of Directors to report all identified errors in
excess of £1,000 (2022: £1,500). Errors below that threshold would also be
reported to it if, in our opinion as auditor, disclosure was required on
qualitative grounds.
Overview of the scope of our audit
Our audit approach was developed by obtaining an understanding of the
company's activities, the key functions undertaken on behalf of the Board by
management and the overall control environment. Based on this understanding we
assessed those aspects of the company transactions and balances which were
most likely to give rise to a material misstatement and were most susceptible
to irregularities including fraud or error. Specifically, we identified what
we considered to be key audit matter and planned our audit approach
accordingly.
Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were
of most significance in our audit of the financial statements of the current
period and include the most significant assessed risks of material
misstatement (whether or not due to fraud) that we identified. These matters
included those which had the greatest effect on: the overall audit strategy,
the allocation of resources in the audit; and directing the efforts of the
engagement team. These matters were addressed in the context of our audit of
the financial statements as a whole, and in forming our opinion thereon, and
we do not provide a separate opinion on these matters.
The only matter we identified as a key audit matter was the material
uncertainty related to going concern, which is set out above.
Our audit procedures in relation to this matter was designed in the context of
our audit opinion as a whole. They were not designed to enable us to express
an opinion on this matter individually and we express no such opinion.
Other information
The other information comprises the information included in the annual report
other than the financial statements and our auditor's report thereon. The
directors are responsible for the other information contained within the
annual report.
Our opinion on the financial statements does not cover the other information
and, except to the extent otherwise explicitly stated in our report, we do not
express any form of assurance conclusion thereon. Our responsibility is to
read the other information and, in doing so, consider whether the other
information is materially inconsistent with the financial statements or our
knowledge obtained in the course of the audit, or otherwise appears to be
materially misstated. If we identify such material inconsistencies or apparent
material misstatements, we are required to determine whether this gives rise
to a material misstatement in the financial statements themselves. If, based
on the work we have performed, we conclude that there is a material
misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion the part of the directors' remuneration report to be audited
has been properly prepared in accordance with the Companies Act 2006.
In our opinion based on the work undertaken in the course of our audit
· the information given in the strategic report and the directors'
report for the financial year for which the financial statements are prepared
is consistent with the financial statements; and
· the strategic report and the directors' report have been prepared
in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its
environment obtained in the course of the audit, we have not identified
material misstatements in the strategic report or the directors' report.
We have nothing to report in respect of the following matters in relation to
which the Companies Act 2006 requires us to report to you if, in our opinion:
· adequate accounting records have not been kept by the company, or
returns adequate for our audit have not been received from branches not
visited by us; or
· the financial statements and the part of the directors'
remuneration report to be audited are not in agreement with the accounting
records and returns; or
· certain disclosures of directors' remuneration specified by law
are not made; or
· we have not received all the information and explanations we
require for our audit
Responsibilities of the directors for the financial statements
As explained more fully in the directors' responsibilities statement, the
directors are responsible for the preparation of the financial statements and
for being satisfied that they give a true and fair view, and for such internal
control as the directors determine is necessary to enable the preparation of
financial statements that are free from material misstatement, whether due to
fraud or error.
In preparing the financial statements, the directors are responsible for
assessing the Company's ability to continue as a going concern, disclosing, as
applicable, matters related to going concern and using the going concern basis
of accounting unless the directors either intend to liquidate the Company or
to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial
statements as a whole are free from material misstatement, whether due to
fraud or error, and to issue an auditor's report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that
an audit conducted in accordance with ISAs (UK) will always detect a material
misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if,
individually or in the aggregate, they could reasonably be expected to
influence the economic decisions of users taken on the basis of these
financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and
regulations. We design procedures in line with our responsibilities, outlined
above, to detect material misstatements in respect of irregularities,
including fraud. The extent to which our procedures are capable of detecting
irregularities, including fraud is detailed below:
We obtained an understanding of the legal and regulatory frameworks within
which the company operates, focusing on those laws and regulations that have a
direct effect on the determination of material amounts and disclosures in the
financial statements. The laws and regulations we considered in this context
were the Companies Act 2006 and taxation legislation.
We identified the greatest risk of material impact on the financial statements
from irregularities, including fraud, to be the override of controls by
management. Our audit procedures to respond to these risks included enquiries
of management about their own identification and assessment of the risks of
irregularities, sample testing on the posting of journals, corroborating
balances recognised to supporting documentation on a sample basis, and
ensuring accounting policies are appropriate under the relevant accounting
standards and applicable law.
Owing to the inherent limitations of an audit, there is an unavoidable risk
that we may not have detected some material misstatements in the financial
statements, even though we have properly planned and performed our audit in
accordance with auditing standards. We are not responsible for preventing
non-compliance and cannot be expected to detect non-compliance with all laws
and regulations.
These inherent limitations are particularly significant in the case of
misstatement resulting from fraud as this may involve sophisticated schemes
designed to avoid detection, including deliberate failure to record
transactions, collusion or the provision of intentional misrepresentations.
A further description of our responsibilities for the audit of the financial
statements is located on the
Financial Reporting Council's website at:
www.frc.org.uk/auditorsresponsibilities
(http://www.frc.org.uk/auditorsresponsibilities) . This description forms part
of our auditor's report.
Other matters which we are required to address
We were appointed by the Board on 21 June 2021 to audit the financial
statements for the year ending 30 April 2021 and subsequent periods. Our
total uninterrupted period of engagement is three years, covering the periods
ending 30 April 2021 to 30 April 2023.
The non-audit services prohibited by the FRC's Ethical Standard were not
provided to the company and we remain independent of the company in conducting
our audit.
Our audit opinion is consistent with the additional report to the board as a
whole.
Use of our report
This report is made solely to the company's members, as a body, in accordance
with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been
undertaken so that we might state to the company's members those matters we
are required to state to them in an auditor's report and for no other purpose.
To the fullest extent permitted by law, we do not accept or assume
responsibility to anyone other than the company and the company's members as a
body, for our audit work, for this report, or for the opinions we have formed.
Stephen Bullock
Senior Statutory Auditor
For and on behalf of
Crowe U.K. LLP
Statutory Auditor
55 Ludgate Hill
London
EC4M 7JW
22 August 2023
Statement of Comprehensive Income for the year ended 30 April 2023
30 April 2023 30 April 2022
Notes GBP GBP
Administrative fees and other expenses 5 (444,287) (259,694)
Operating loss (444,287) (259,694)
Finance costs - -
Loss before tax (444,287) (259,694)
Income tax 8 - -
Loss for the year and total comprehensive loss for the year (444,287) (259,694)
Basic and diluted loss per share (pence) 9 (1.03) (0.69)
There was no other comprehensive income for the year ended on 30 April 2023
(2022: Nil).
Statement of Financial Position as at 30 April 2023
Notes 2023 2022
GBP GBP
Current assets
Other receivables 10 249,341 20,075
Cash and cash equivalents 154,759 757,103
Total current assets 412,100 777,178
Current liabilities
Trade and other current liabilities 11 119,223 40,015
Total current liabilities 119,223 40,015
Net assets 292,877 737,163
Equity
Share capital 11 216,250 216,250
Share Premium 11 921,797 921,797
Share option reserve 12 17,422 17,422
Retained earnings (862,592) (418,306)
Total equity 292,877 737,163
The financial statements were approved and authorised for issue by the Board
of Directors on 22 August 2023 and were signed on its behalf by:
Cameron
Pearce
Winton Willesee
Director
Director
Statement of Changes in Equity for the year ended 30 April 2023
Share premium Share option reserve Retained earnings Total
Share equity
capital
GBP GBP GBP GBP GBP
Balance as at 30 April 2021 91,667 208,333 - (158,612) 141,388
Total comprehensive loss - - - (259,694) (259,694)
Contributions from equity holders
New shares issued (note 11) 124,583 785,417 - - 910,000
Share issue cost - (71,953) - - (71,953)
Issue of share options/warrants - - 17,422 - 17,422
Total contributions from equity holders 124,583 713,464 17,422 - 855,469
Balance as at 30 April 2022 216,250 921,797 17,422 (418,306) 737,163
Total comprehensive loss - - - (444,286) (444,286)
Balance as at 30 April 2023 216,250 921,797 17,422 (852,592) 292,877
Statement of Cash Flows for the year ended 30 April 2023
Notes 2023 2022
GBP GBP
Operating activities
Loss after tax (444,287) (259,694)
Issue of share options/warrants 12 - 17,422
Changes in working capital
Decrease in trade and other receivables (237,265) (2,075)
(Increase)/decrease in trade and other payables 11 (79,208) 10,015
Net cash flows from operating activities (682,344) (234,332)
Investing activities
Loan to Kamalenge Gold Project 10 (249,341) -
Net cash flows from investing activities (249,341) -
Financing activities
Shares issued (net of issue costs) 11 - 623,547
Net cash flows from financing activities - 623,547
(Decrease)/Increase in cash and cash equivalents (602,344) 389,215
Cash and cash equivalents as at the beginning of the year 757,103 367,888
Cash and cash equivalents at 30 April 154,759 757,103
Notes to the Financial Statements for the year ended 30 April 2023
1. General
Citius Resources Plc (the "Company") is a public limited company limited by
shares incorporated and registered in England and Wales on 15 April 2020 (as
Citius Resources Limited, the name was changed to Citius Resources Plc on 3
August 2020) with registered company number 12557958 and its registered office
situated in England and Wales with its registered office at 167-169 Great
Portland Street, Fifth Floor, London, W1W 5PF.
2. Accounting Policies
2.1 Basis of preparation
The principal accounting policies applied in the preparation of the Company's
financial statements are set out below. These policies have been
consistently applied to the years presented, unless otherwise stated.
The Company's financial statements have been prepared in accordance with
UK-adopted International Accounting Standards and the Companies Act 2006. The
Company's financial statements have been prepared on a historical cost basis.
The Company's financial statements are presented in £, which is the Company's
functional currency. All amounts have been rounded to the nearest pound,
unless otherwise stated.
2.2 Standards and interpretations issued but not yet applied
The following were new standards and amendments issued or amended by the UK
Endorsement Board or the IASB which are relevant to the Company and are
effective for annual periods commencing on or after 1 May 2022:
· Onerous Contracts - Cost of Fulfilling a Contract
(Amendments to IAS 37)
· Annual Improvements to IFRS Standards 2018-2020
· Property, Plant and Equipment: Proceeds before
Intended Use (Amendments to IAS 16)
· Reference to the Conceptual Framework (Amendments
to IFRS 3)
Adoption of these new and amended standards has had no material impact on the
financial statements of the Company.
Accounting Standards or interpretations, not yet early adopted
A number of new standards, amendments to existing standards and
interpretations which have been issued or amended by UK IAS, are not yet
effective and have not been applied in preparing these financial statements.
The Directors are considering the standards, however, at this time they are
not expected to have a material impact on the Company.
2.3 Going concern
The Company's business activities, together with the factors likely to affect
its future development, performance and positions are set out in the Strategic
Report.
The Company is an investment company, and currently has no income stream until
a suitable acquisition is acquired, it is therefore dependent on its cash
reserves to fund ongoing costs.
The Directors have reviewed the Company's ongoing activities including its
future intentions in respect of acquisitions. At the date of approval of these
financial statements the proposed RTO of AUC Mining Limited has not completed.
If the proposed RTO does not complete and the target is unable subsequently to
make timely reimbursement of amounts of £249,341 advanced to it, further
working capital will be required in order to fund the Company's operating
costs for at least 12 months. If the proposed RTO does complete, further
working capital will be required in order to fund the operations of the
enlarged group. The directors believe that additional capital can be raised
in either eventuality in order to enable the Company to continue in existence
for a period of at least 12 months from the date of approval of these
financial statements and that, once the proposed RTO has completed, the
Company will be in the position to raise sufficient capital to bring the
acquired mining project into production. At the date of approval of these
financial statements the availability of additional capital is not guaranteed
and this represents a material uncertainty in relation to the Company's
funding arrangements.
3. Significant accounting policies
The principal accounting policies applied in the preparation of these
financial statements are set out below:
3.1 Foreign currency
Transactions in foreign currencies are translated to the functional currency
at the exchange rates ruling at the dates of the transactions. Monetary
assets and liabilities denominated in foreign currencies at the reporting date
are retranslated to the functional currency at the exchange rate at that date.
Exchange differences arising on translation are recognised in profit or
loss.
3.2 Earnings per share
Basic EPS is calculated by dividing the profit or loss attributable to
ordinary shareholders of the Company by the weighted average number of
ordinary shares outstanding during the year. Diluted EPS is calculated by
adjusting the earnings and number of shares for the effects of dilutive
potential ordinary shares.
3.3 Income tax
Income tax expense comprises current tax and deferred tax.
Current income tax
Current tax is recognised in profit or loss except to the extent that it
relates to a business combination, or items recognised directly in equity or
in other comprehensive income.
Deferred income tax
Deferred income tax is recognised on temporary differences arising between the
tax bases of assets and liabilities and their carrying amounts in the
financial statements. Deferred income tax assets and liabilities are
measured on an undiscounted basis at the tax rates that are expected to apply
to the year when the related asset is realised or the liability is settled,
based on tax rates (and tax laws) that have been enacted or substantively
enacted at the date of the statement of financial position.
3.4 Cash and cash equivalents
Cash and cash equivalents comprise of cash on hand.
3.5 Financial instruments
Financial assets
Financial assets are classified as financial assets at fair value through
profit or loss, loans and receivables, held-to-maturity financial assets and
available-for-sale financial assets, as appropriate. The Company determines
the classification of its financial assets at initial recognition. When
financial assets are recognised initially, they are measured at fair value,
plus, in the case of investments not at fair value through profit or loss,
directly attributable transaction costs. Financial assets are derecognised
only when the contractual rights to the cash flows from the financial asset
expire or the Company transfers substantially all risks and rewards of
ownership.
The Company's financial assets consist of other receivables and cash and cash
equivalents. Other receivables are recognised initially at fair value and
subsequently measured at amortised cost. Cash and cash equivalents include
cash in hand The Company assesses on a forward-looking basis the expect credit
losses, defined as the difference between the contractual cash flows and the
cash flows that are expected to be received.
3.5 Financial instruments (continued)
Financial liabilities and equity
Liabilities are classified as financial liabilities at fair value through
profit or loss or other liabilities, as appropriate. A financial liability is
derecognised when the obligation under the liability is discharged or
cancelled or expires.
Financial liabilities included in trade and other payables are recognised
initially at fair value and subsequently at amortised cost. The fair value of
a non-interest bearing liability is its discounted repayment amount. If the
due date of the liability is less than one year, discounting is omitted.
Shares are classified as equity when there is no obligation to transfer cash
or other assets. Incremental costs directly attributable to the issue of new
shares are shown in equity as a deduction, net of tax, from the proceeds.
3.6 Share capital
Ordinary shares
Ordinary shares are classified as equity. Incremental costs directly
attributable to the issue of ordinary shares are recognised as a deduction
from equity, net of any tax effects. Dividend distribution to the Company's
shareholders is recognised as a liability in the Company's financial
statements in the year in which the dividends are approved.
3.7 Share based payments
Equity-settled share awards are recognised as an expense based on their fair
value at date of grant. The fair value of equity-settled share options is
estimated through the use of option valuation models - which require inputs
such as the risk-free interest rate, expected dividends, expected volatility
and the expected option life - and is expensed over the vesting period. Please
see note 12 for further information regarding share based assumptions.
4. Critical accounting estimates and judgments
In preparing the Company financial statements, the Directors have to make
judgments on how to apply the Company's accounting policies and make estimates
about the future. The Directors do not consider there to be any critical
judgments that have been made in arriving at the amounts recognised in the
Company financial statements.
5. Administrative fee and other expenses
30 April 2023 30 April 2022
GBP GBP
Project cost expenditure 216,112 -
Directors' remuneration (note 6) 48,000 48,000
Professional fees 115,785 140,259
Audit fees 36,000 30,000
Administration fees 18,000 12,310
Warrant costs - 17,422
Miscellaneous fees 10,390 11,703
Total 444,287 259,694
The company did not employ any staff during the year other than Directors. The
Directors are the only members of key management and their remuneration
related solely to short term employee benefits.
6. Directors remuneration
30 April 2023 30 April 2022
GBP GBP
Directors fees 48,000 48,000
7. Employees
Number of employees
The average monthly number of employees (including Directors) during the year
was:
30 April 2023 30 April 2022
Number Number
Directors 3 3
3 3
Employment costs
30 April 2023 30 April 2022
GBP GBP
Remuneration for qualifying services 48,000 48,000
8. Taxation
Analysis of charge in the year 30 April 2023 30 April 2022
GBP GBP
Current tax:
UK Corporation tax on loss for the year - -
Deferred tax - -
Tax on loss on ordinary activities - --
Loss on ordinary activities before tax (444,287) (259,694)
Less non-deductible expenditure 66,698 153,435
Total taxable loss (377,589) (106,259)
Loss on ordinary activities multiplied by rate of corporation tax in the UK of (71,742) (20,189)
19%
Tax losses carried forward (71,742) (20,189)
Current tax charged - -
Total tax losses available to be carried forward is £624,348 (2022:
£246,759). No deferred tax assets have been recognised due to the uncertainty
of future profits.
9. Loss per share
The calculation of the basic and diluted loss per share is based on the
following data:
30 April 2023 30 April 2022
Earnings
Loss from continuing operations for the year attributable to the equity (444,287) (259,694)
holders of the Company
Number of shares
Weighted average number of Ordinary Shares for the purpose of basic and
diluted earnings per share
43,250,000 37,423,744
Basic and diluted loss per share (pence) (1.03) (0.69)
There are no potentially dilutive shares in issue.
10. Other receivables
30 April 2023 30 April 2022
GBP GBP
Loan to Kamalenge Gold Project 249,341 -
Prepayments 8,000 20,075
Total 257,341 20,075
11. Creditors: Amounts falling due within one year
30 April 2023 30 April 2022
GBP GBP
Trade payables 722 7,916
Cash received in advanced 80,000 -
Accruals 38,500 32,099
Total 119,222 40,015
In March 2023, the Company received £80,000 funds in advance from a
shareholder which is intended to be converted into ordinary shares following
the next Capital Raised.
12. Share capital
Number of shares issued Nominal value per share Share Share premium Total share capital
capital
GBP GBP GBP GBP
At 30 April 2021 18,333,334 91,667 208,333 300,000
Issue of ordinary shares 3 8,666,665 0.005 43,333 216,667 260,000
Issue of ordinary shares 4 16,250,001 0.005 81,250 568,750 650,000
Share issue cost - (71,953) (71,953)
At 30 April 2022 43,250,000 216,250 921,797 1,138,047
At 30 April 2023 43,250,000 216,250 921,797 1,138,047
On 26 May 2021, the Company issued 8,666,665 Ordinary Shares at £0.03 each.
For every Ordinary Shares subscribed for, the Company issued to such
Subscribers a warrant to acquire one Ordinary Shares for a period of 4 years
from the IPO date at a price of £0.03 per Ordinary Share.
On 25 August 2021, the Company was admitted to the London Stock Exchange and
as part of the Company's IPO, 16,250,001 Ordinary Shares were issued as £0.04
each. 2,250,001 of these shares were given to consultants ("consultant
shares") and 14,000,000 were acquired by shareholders ("placing shares"). For
every two of the placing Ordinary Shares subscribed for, the Company issued to
such Subscribers a warrant to acquire one Ordinary Share for a period of 3
years from admission as a price of £0.06 each.
All the shares issued, with same nominal values, are classed as Ordinary
Shares and have same rights attached to them.
13. Share based payments
Warrants
No warrants were issued in exchange for a good or service during 2023 (2022:
1,333,333). The number of warrants issued in exchange for goods or services
during as at 30 April 2023 is a follow:
30 April 2023
Number of warrants Weighted Average exercise price
Outstanding on 1 May 1,333,333 3.62p
Issued during the year - -
Outstanding on 30 April 1,333,333 3.62p
Weighted average remaining contractual life 1.32 years
The warrants have vested on grant and have been recognised in full upon issue.
If the warrants remain unexercised after a period of three years from the date
of grant, they will expire. The holder may exercise the subscription right at
any time within the subscription period.
The above warrants were valued using the Black Scholes valuation method. The
assumptions used are detailed below. The expected future volatility has been
determined by reference to the average volatility of similar entities:
13. Share based payments (continued)
Warrants 30 April 2023
Weighted Average Share Price 4p
Weighted Average Exercise Price 3.62p
Expected Volatility 51%
Expected Life 3 years
Risk-free Rate 0.59%
Expected Dividend Nil
Weighted Average Fair Value (GBP) 17,422
In addition to the above, the Company has issued warrants to subscribe for
ordinary shares as part of equity fundraise transactions. On 16 August 2021
the Company granted 13,500,000 warrants to subscribe for ordinary shares at 4p
per share to pre-IPO investors. On Admission on 25 August 2021, the Company
granted a further 7,000,000 warrants to subscribe for ordinary shares at 6p
per share to places. The following investor warrants were issued which fall
outside the scope of IFRS 2:
Number of warrants Weighted Average exercise price
Outstanding on 1 May 2021 - -
Issued during the year 13,500,000 4.0p
Issued during the year 7,000,000 6.0p
Outstanding on 30 April 2022 20,500,000 4.68p
Outstanding on 30 April 2023 20,500,000 4.68p
Weighted average remaining contractual life 1.32 years
The warrants have vested on grant and have been recognised in full upon issue.
If the warrants remain unexercised after a period of three years from the date
of grant, they will expire. The holder may exercise the subscription right at
any time within the subscription period.
Deferred Tax
No deferred tax asset has been recognised in respect of warrants.
14. Financial instruments
14.1 Categories of financial instruments
30 April 2023 30 April 2022
GBP GBP
Financial assets
Trade and other receivables 257,341 20,075
Cash and cash equivalents 154,759 757,103
Financial liabilities
Trade and other payables 119,223 40,015
14.2 Financial risk management objectives and policies
The Company's major financial instruments include bank balances, trade and other payables and accrued expense. Details of these financial instruments are disclosed in respective notes. The risks associated with these financial instruments, and the policies on how to mitigate these risks are set out below. The management manages and monitors these exposures to ensure appropriate measures are implemented on a timely and effective manner.
Currency risk
As all monetary assets and liabilities and all transaction of Company are denominated in its functional currency, the director considers the Company is not exposed to significant foreign currency risk.
Liquidity risk
Liquidity risk is the risk of the Company being unable to meet its liabilities as they fall due. The Company manages liquidity risk by maintaining enough cash reserves and holding banking facilities, and by continuously monitoring forecast and actual cash flows.
15. Related party transactions
The are no related party transactions during the year except for the
Director's remuneration, which has been disclosed in note 6.
16. Ultimate controlling party
The Directors do not consider there to be an ultimate controlling party.
17. Subsequent events
There are no post year events.
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. END FR FLFISTVIFFIVRecent news on Citius Resources
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