Mercom was admitted to AIM on 29 May 2012, having previously entered into the Farm-in Agreement to acquire a 50% ownership and working interest in four oil sand leases over the Chard field in Alberta, Canada and at that time, other than cash, this contract represented the principal asset of the Company. Full details of the Farm-in Agreement and the oil sands leases are set out in the Admission Document
Subsequent to the admission of the Company to AIM, the Board took the decision not to implement the Farm-in Agreement and as a consequence the Company did not proceed to comply with the conditions precedent under the Farm-in Agreement, but instead, sought to renegotiate that agreement on alternative basis. The Company's proposals in this regard have however been rejected by the board of Nordic Petroleum which has declared the Company to be in breach of its contractual obligations which is available under Reports and Accounts in the Investor Relations section of this website.
This matter has yet to be resolved and accordingly it is therefore difficult to properly assess the long term strategic options available to the Company as discussed below. In the medium term the Company has approximately £2.0 million in cash and assets (as at 31 March 2013) and few liabilities beyond any potential claim from Nordic Petroleum. The Company has therefore sought the approval of Shareholders for the adoption of an investment strategy to enable the Company to maximise the return from its liquid resources. To this end, a General Meeting was convened on 24 May 2013 where all resolutions were duly passed.