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  • Red Emperor Resources (RMP) shares remain suspended as the company awaits approval from the market operator for a potential acquisition
  • In the oil and gas explorer’s latest half-year report, released today, the company highlighted a slightly improved loss of just under $366,000
  • The company also revealed it has over $4.2 million worth of cash and cash equivalents in the bank to continue operations
  • However, shares in the business have been suspended since January in light of a “proposed transaction” being considered by the ASX
  • Red Emperor said it has been considering projects in the wider resources sector, outside of the oil and gas market, but this could come with some issues
  • The company is listed on both the ASX and the Alternative Investment Market (AIM), which is a specialised sub-market on the London Stock Exchange
  • The AIM has very specific listing rules that could impact Red Emperor if it wants to branch out into other sectors
  • Whether or not the AIM listing rules have anything to do with RMP’s ongoing suspension has not been made clear
  • Shares in the company last traded for 1.7 cents each on January 19, 2021

Red Emperor Resources (RMP) shares remain suspended as the company awaits approval from the market operator for a potential acquisition.

The oil and gas explorer released its latest half-yearly report today, but shareholders have not had a chance to react to the company’s financials given the suspension.

In the report for the six months to the end of December 2020, Red Emperor highlighted an improved half-yearly loss of just under $366,000 compared to the $498,000 loss over the prior corresponding period.

This came on the back of an increased half-yearly income of $52,500 compared to $13,400 in income for the same timeframe in 2019.

Importantly, Red Emperor confirmed it still had over $4.2 million worth of cash and cash equivalents in the bank at the end of December 2020 — less than the $5.1 million in the bank at the same time in 2019, but still enough to continue operating at its current rate of cash burn.

Why the share suspension?

Red Emperor said it spent the half-year evaluating “potential deal opportunities, primarily in the global oil and gas sector”.

The company added that there were a number of potential projects in the wider natural resources sector, outside of the oil and gas market, that it has also considered over the half-year.

However, Red Emperor has shares listed both on the ASX and the Alternative Investment Market (AIM), which is a specialised sub-market operated by the London Stock Exchange.

The AIM has very specific listing rules and, given this, Red Emperor would need to essentially commit to a reverse takeover or seek re-admission to the AIM in light of its interest in other types of projects.

No major details about any projects — oil and gas or otherwise — have been released to the market.

However, Red Emperor said it has made an application to the ASX in respect of a “proposed transaction” which is currently under consideration.

It would seem this is the same transaction from the company’s January 22 announcement when its shares were suspended ahead of a potential acquisition. Whether this ongoing suspension has anything to do with the AIM listing rules has not been made clear.

Shares in Red Emperor last traded for 1.6 cents each on Tuesday, January 19. The company has a $8.93 million market cap.

RMP by the numbers
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