New World Oil and Gas is continuing to make good progress with the possible reverse takeover of Big Sofa and directors remain of the view that this acquisition is an attractive proposition for shareholders. "Big Sofa is continuing to win new mandates from a number of leading companies and is expanding internationally, particularly in the United States where a number of its important clients are based," New World said. "Big Sofa is now becoming increasingly well-established within the fast growing global video insight and analytics sector. "The company has also recently made a number of key appointments and is therefore now well-resourced to capitalise on its recent contract wins and convert a number of new business opportunities." FURTHER LOAN "Given the progress that Big Sofa has made to date, the Board has decided to provide Big Sofa with a further loan of £100,000, in addition to the £500,000 already advanced as announced on 19 July 2016, and on the same terms, in order to provide additional working capital to support this rapid growth," New World said. LICENCES "As previously reported, the Company's only remaining oil and gas asset is the Blue Creek Production Sharing Agreement in Belize, which is due to expire on 31 October 2016. The Board confirms that the Company is currently seeking to dispose or relinquish this asset. "The Company has also commenced the process of dissolving the subsidiaries associated with its Danish licences which were relinquished in September 2015. "As announced on 9 May 2016, trading in the Company's shares were suspended given that the possible acquisition of Big Sofa (the "Acquisition") would amount to a reverse takeover under the AIM Rules, pending the publication of the required AIM admission document or confirmation that the Acquisition is not proceeding. "Upon completion of any disposal or expiry of the Company's existing oil and gas assets prior to the Acquisition, the Company will become an AIM Rule 15 cash shell."
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