Unaudited interim financials / further restructure steps

Goodwood Capital Limited (NZX: GWC) has released its unaudited interim financial statements for the six month period ended 30 September 2020 (being a reporting period while the company was in liquidation). Further steps in Company restructure Following the Company's removal from liquidation pursuant to an order of the High Court dated 9 October 2020, the Board's immediate focus is on restructuring the Company with a view to seeking the lifting of the trading suspension in the Company's shares that was imposed when the Company was originally placed into liquidation several years ago. The Company continues to work with NZX to advance the lifting of the suspension on the trading on the Company's shares and will report to shareholders with any material developments in that regard. The Board is actively looking to identify a suitable business opportunity to invest in and/or acquire through a reverse takeover transaction (RTO). Currently, there are no initiatives being investigated, but the Company will provide the market with any updates as to material developments in due course. Mounterowen Limited (Mounterowen) (a company controlled by director Sean Joyce) has continued to support the Company. Initially Mounterowen acquired all outstanding liquidation debts of approximately $250,000 and has agreed to defer the repayment of that debt. For further details of the deferment, please refer to the going concern note on page 8 of the unauidted interim financial statements. Subsequently, Mounterowen has also made several additional loan advances amounting to $100,509 in aggregate to the Company to assist with costs associated with the application made to the High Court to terminate the liquidation, liquidators' costs, and accounting and administration costs. These advances are repayable at the earlier of 12 months from the date of the loan advances, provided the Company is solvent at the time, and the date upon which the Company enters into a major transaction. When the new Board assumed their roles as directors of the Company, the Company had no cash reserves, and no assets, other than a cash bond held by NZX. In order to provide the Company with additional working capital to fund the costs associated with the Company being listed, the Company has undertaken a capital raise of $52,669 through the issue of 2,633,451 new ordinary shares to wholesale investors at an issue price of 2 cents per share. The new shares were issued on 13 November 2020. In addition, with a view to strengthening the Company's balance sheet, and to provide additional working capital which the Company can deploy against the payment of potential costs to be incurred in advancing an RTO, when a suitable opportunity is identified, the Board proposes to seek the approval of shareholders to the following two initiatives at the Annual Meeting of the Company to be held in December 2020: o The capitalisation of up to $200,000 of the loan advances previously made by Mounterowen Limited into new shares in the Company, at an issue price of 2 cents per share. o The issue of 5 million new ordinary fully paid shares to wholesale investors, at an issue price of 2 cents per share, to raise $100,000. Company's financial position The Company's financial position at 17 November 2020, following the $52,669 capital raise noted above, is shown in the chair's letter in accompanying the unauidted interim financial statementst. The disclosure in the chair's letter also shows a proforma balance sheet which reflects the potential financial position of the Company as at 17 November 2020, had the conversion of $200,000 of the Mounterowen loan, and the $100,000 capital raise, occurred at this date. Result The financial result for the Group for the six months ended 30 September 2020 is a loss after taxation of NZD $57,481 which is largely due to costs associated with the Company's removal from liquidation, and accounting and administration costs. The Company intends to hold an annual meeting of shareholders in mid-December 2020 and will confirm the date and provide details of the venue in due course. End CA:00363336 For:GWC Type:HALFYR Time:2020-11-17 08:43:10