Richmond Hill to exit drinks industry amid losses

LONDON - Richmond Hill Resources Plc, facing declining shareholder value and market support, has decided to divest its interests in the beverage industry, the company announced Monday. After reporting a significant loss for the fiscal year ending September 30, 2024, the board has proposed a shift in investment strategy toward the natural resources sector, particularly in North America.

The company, which has not achieved cash flow positivity and has seen its share price on the Aquis exchange fail to reflect asset value, attributes its decision to the challenging market conditions for small and micro-cap beverage companies. Industry trends have shown delistings of major firms like Britvic (LON:BVIC) PLC and Diageo (LON:DGE) PLC from various stock exchanges, with similar moves by smaller companies such as British Honey Company PLC and East Imperial PLC.

Richmond Hill’s loss before tax for the year amounted to $5,253,000, a steep increase from the previous year’s $637,000. This includes an impairment of intangibles totaling $3,679,000. The net assets have declined from $3,561,000 to a deficit of ($399,000).

The auditors’ report highlighted a material uncertainty regarding the company’s ability to continue as a going concern, noting the necessity for further funding to meet investment plans. Despite raising funds in February and March 2025, the company’s liabilities exceed its assets, and it will need to secure additional funds later this year.

The board believes that pivoting to the natural resources market could enhance the company’s ability to raise capital and provide returns for shareholders. Richmond Hill, which renamed itself from its previous focus on February 21, 2025, plans to target acquisitions in base and precious metal assets and may consider a reverse takeover.

The company has already sold 36.71% of its stake in Shinju Inc. and intends to dispose of the remaining drinks business and subsidiaries, subject to shareholder approval.

This strategic shift comes as Richmond Hill seeks to align its operations with the board’s expertise in the natural resources sector and to mitigate risks through a thorough due diligence process for potential investments.

The information in this article is based on a press release statement from Richmond Hill Resources Plc.

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