Amigo Holdings appoints new chair as reverse takeover search continues

(Sharecast News) - Amigo Holdings, the guarantor loans company that ceased offering new loans in 2023, said its core focus remains on exploring a reverse takeover in the mining sector as it released its annual report on Monday. Amigo starting winding down its lending operations two years ago, and placed its subsidiaries into liquidation in September, effectively leaving it as a cash entity with minimal liabilities.

Having made all of its staff redundant during the financial year to 30 September, the company has slashed its administrative and corporate costs, and - after winding-up costs and indemnities of £290,000 - has around £460,000 in cash left to cover minimal running costs and to support the search for a potential reverse takeover.

Amigo then appointed Australian entrepreneur Craig Ransley as a board consultant in October, who then raised £1.5m in risk capital in convertible loan notes. The firm announced on Friday that Ransley has now been made director and executive chair.

"While there can be no certainly that a transaction will materialise, Craig's proven track record and the progress made to date have significantly strengthened our prospects of achieving a successful resolution," said outgoing chair Jonathan Roe.

Commenting on his appointment, Ransley said his key focus will be "to reposition Amigo with a focus on gold and rare earth mining opportunities in Africa, principally in Tanzania and Mauritania".