The Board of Resort Savings and Loans Plc (NSE: RESORTSAL) earlier today notified The Nigerian Stock Exchange and the investing public of updates on the Bank’s recapitalization exercise.
In the publication seen by Investogist, the bank stated that it has executed a share purchase agreement with Camey & Rock Consulting Limited to the tune of N4.300 billion following Camey & Rock’s strategic equity investment in the Bank.
The cash will be injected into the Bank in tranches, and the activities relating to this transaction are still on going.
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In a publication over a year ago, November 26, 2019 to be precise, Nairametrics reported that Camey and Rock Consulting Limited has acquired the 8.670 billion unissued ordinary shares of Resort Savings and Loans Plc for N4.300 billion.
According to the report which cited Punch, the Chief Executive Officer, Camey and Rock, Peter Adejoh had stated in Abuja that with the acquisition, Camey and Rock emerged the majority shareholder with 43.35% of the bank’s shares.
The publication earlier today went on to say that in order to inject the next tranche of cash into the Bank and to kick-start full operations of the Bank, Camey & Rock have requested for extension from the Bank’s primary regulator, the Central Bank of Nigeria (CBN) to enable it to conclude the recapitalization exercise of the Bank outside the deadline of 31 December 2020 to 30 June 2021.
Resorts Savings and Loan Plc is waiting for the response of CBN to Camey & Rock request. With the recapitalization, the Bank expects to deliver impressive returns to its shareholders and satisfy the expectation of its other stakeholders in the near future.
The moves to recapitalize has been a long and stretched out one for RESORTSAL. In 2018, it joined other listed companies; JAPAUL and UNITYBANK to announce that New York based Milost Global Inc. had committed to invest in it.
The corporate release at that time stated that the bank had executed a $250 million financing facility term sheet and a commitment letter with Milost Global Inc. The financing was to comprise of $100 million equity and $150 million debt.
The publication by Nairametrics in 2019 came a year after the bank notified The NSE and investing public about Milost Global Inc. Approximately a year later, the bank has given updates to The NSE and the investing public about the recapitalization effort.
On 8 July 2020, Investogist reported a list of 13 defaulting companies, The Nigerian Stock Exchange warned Investors to be cautious of while trading their stocks. Resort Savings & Loans Plc was amongst these 13 companies.
The Exchanged disclosed that the 13 companies have failed to comply with the directives of The Exchange to issue a press release as stated in the Deficiency Filling Notice (DFN) issued to the companies.
The last financial statement released by RESORTSAL was the Q1 2018 Interim Accounts for the period ended 31 March, 2018. The bank reported an Interest Income of N156.690 and Net Loss of N9.964 million.
Trading on the shares of the bank is currently suspended by The Nigerian Stock Exchange. The share price is at a price of 20 kobo, which is the floor price for The Exchange.
About Resort Savings and Loans Plc
Resort Savings & Loans Plc was incorporated in Nigeria on June 17 1992 under the Companies & Allied Matters Act, 2004 as a private Limited Liability Company, with its corporate office at 5th Floor, St. Nicholas House, 6 Catholic Mission Street, Lagos, Nigeria. The Bank was granted licence on September 10 1993 to carry on Mortgage banking.
The bank in readiness for listing on the Nigeria Stock Exchange (NSE) converted to a public liability company on April 1, 2008 and was listed on the floor of the Nigerian Stock Exchange (NSE) by way of introduction on November 23, 2009.
Resort Savings & Loans Plc is duly licensed to carry on Mortgage banking business and has operated for fifteen years. It is a Primary Mortgage Bank (PMB) authorised to receive deposits and maintain accounts for their customers for the purpose of providing service, creating mortgage assets and other credit facilities.
By this function Resort Savings & Loans Plc is a financial intermediary that reviews the creditworthiness of a borrower, provides the funds for the loan and quickly sells mortgages into the secondary mortgage market.
By; Nnamdi M.