Investor Presentaiton
Armour Energy and controlled entities
armourenergy.com.au
Financial report continued
Notes to the consolidated financial statements continued
NOTE 32. RELATED PARTY TRANSACTIONS CONTINUED
JOINT OPERATIONS
Interests in joint ventures are set out in note 32.
KEY MANAGEMENT PERSONNEL
Disclosures relating to key management personnel are set out in note 36 and the remuneration report included in the Directors'
report.
TRANSACTIONS WITH RELATED PARTIES
Ⓒ The following transactions occurred with related parties during the reporting period:
Samuel Holdings Pty Ltd and Bizzell Capital Partners
In August 2019, Armour completed an entitlement offer fully underwritten by Samuel Holdings Pty Ltd (as trustee). Samuel Holdings
was paid a $1 underwriting fee, and a 3% sub-underwriting fee was payable by Armour on written sub-underwriting commitments.
Bizzell Capital Partners held a sub-underwriting agreement and was responsible for any selling fees, stamping fees and sub-
underwriting fees it had to pay out of the fees to other brokers or to sub-underwriters of the offers. The gross fees paid under this
agreement to Bizzell Capital Partners for the year ended 30 June 2020 was $264,000 (2019: $144,500).
Company debt instruments held by key management personnel
The number of convertible notes in the Company held during the financial year by each director and other members of key
management personnel of the Group, including their personally related parties, is set out below:
Consolidated
30 June
2020
$
30 June
2019
$
Corporate bond holdings
Stephen Bizzell
Balance at the
start of the year
Additions
100
Disposals/other
Balance at the
end of the year
100
Payment for goods and services:
Payment for services from entity with significant influence - DGR Global Ltd'
Payment for services from other related party - Bizzell Capital Partners²
456,000
336,039
456,000
144,500
1 The Group has a commercial arrangement with DGR Global Ltd (a major shareholder) for the provision of various services, whereby DGR
Global provides resources and services including the provision of its administration staff, its premises (for the purposes of conducting the
Group's business operation), use of existing office furniture, equipment and certain stationery, together with general telephone, reception and
other office facilities ("Services").
S
ப
in consideration for the provision of the Services, the Group pays DGR Global a monthly management fee of $38,000 (2019: $38,000). For the
year ended 30 June 2020 $456,000 (2019: $456,000) was paid or payable to DGR Global for the provision of the Services. The total amount
outstanding at year end was $167,200 (2019: $88,930). As at 30 June 2020 DGR Global held nil convertible notes, and 8,750 corporate bonds
totalling $8,750,000 (2019: nil convertible notes, 8,750 corporate bonds). The corporate bonds were purchased on the same terms and
conditions as other bondholders.
2 On 23 September 2019, Armour Energy completed a private placement which raised gross proceeds of $4 million via the allotment of 80
million shares, with attaching unlisted options. Bizzell Capital Partners managed the private placement and was paid a capital raising fee of
$240,000. Bizzell Capital Partners received an allotment of 8 million unlisted options exercisable at 8 cents through to 30 September 2023. Of
the 8 million options, 2 million were subsequently transferred to an unrelated sub-underwriter.
During June 2020, Armour announced a capital raising comprising a Placement and an Entitlement Offer, with the Entitlement Offer being fully
underwritten by Bizzell Capital Partners. Bizzell Capital Partners was paid $22,687 under the Underwriting Agreement, and $73,352 in relation
to the allotment of Placement Shares on 23 June 2020.
As at 30 June 2020, Bizzell Capital Partners held 6 million unlisted options, nil convertible notes, and 100 corporate bonds (2019: nil
underwriting options, nil convertible notes, and 100 corporate bonds). The corporate bonds were purchased on the same terms and conditions
as all other bondholders.
Samuel Holdings Pty Ltd
Samuel Holdings Pty Ltd is an entity associated with the Company's Chairman, Nicholas Mather. Samuel Holdings held 9,813,550
convertible notes which were redeemed for cash on 29 March 2019 for a total of $1,194,427. During the prior year Samuel Holdings
was also paid interest on their convertible notes of $159,705.
All other directors and key management personnel did not hold any debt instruments in the Company at the start, during or at the
end of the year.
NOTE 33. NON-CURRENT ASSETS
Motor vehicles - right-of-use
Less: Accumulated depreciation
RIGHT-OF-USE ASSETS
ACCOUNTING POLICY FOR RIGHT-OF-USE ASSETS
Consolidated
30 June
2020
$
30 June
2019
$
626,477
(410,460)
216,017
A right-of-use asset is recognised at the commencement date of a lease. The right-of-use asset is measured at cost, which
comprises the initial amount of the lease liability, adjusted for, as applicable, any lease payments made at or before the
commencement date net of any lease incentives received, any initial direct costs incurred, and, except where included in the cost of
inventories, an estimate of costs expected to be incurred for dismantling and removing the underlying asset, and restoring the site
or asset.
Right-of-use assets are depreciated on a straight-line basis over the unexpired period of the lease or the estimated useful life of
the asset, whichever is the shorter. Where the Group expects to obtain ownership of the leased asset at the end of the lease term,
the depreciation is over its estimated useful life. Right-of use assets are subject to impairment in line with AASB138 Impairment of
Assets or adjusted for any remeasurement of lease liabilities.
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