Sefton Resources Are they solvent?

I have sought an undertaking from Allenby Capital that Sefton Resources were not trading while insolvent. Mr Harriss has failed to give that undertaking in reply to my enquiry regarding Sefton’s solvency. The letter is below which has now been forwarded to the relevant authorities.

An Open Letter to Nick Harriss of Allenby Capital


F.A.O Aim Regulation Team Re’ ISS10755051. ISS10839399

F.A.O Market Abuse Team Re’ FCA Martin Wheatley ISS10764561

Re’ Sefton Resources


Dear Nick.

At 31st December Sefton had net cash of circa $1 million. It has since raised circa $1 million in fresh equity. We both know that its cash burn per quarter is circa $1 million.

But since March 2013 it has increased capital expenditure in both California and Kansas and it has incurred material short term liabilities in pursuing spurious legal claims against myself and Tom Winnifrith for libel.

And so I ask: have you done your duty and established beyond all doubt that Sefton is not trading whilst technically insolvent? – A criminal offence.

If its cash plus trade receivables is less than its short term liabilities ( short term bank debt and trade payables + its committed legal fees in the Levi & Winnifrith cases which are, I gather c$600,000) then it would be trading whilst insolvent.

Have you an up to date balance sheet which demonstrates that the client you are legally responsible for monitoring is not trading whist insolvent? I’m CCing in the AIM Regulation team & the FCA, since it will no doubt be keen to ensure that you are fulfilling your obligations as a Nomad and will be interested in your reply.

Dan Levi.

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