LONDON (Alliance News) - New World Oil and Gas PLC on Thursday announced a new share placing and open offer to raise up to GBP3.5 million, funds the oil investment firm said it needs to continue operating longer than another three months as it currently has only GBP290,000 in cash.
New World had said on Monday it was still expecting to proceed with an open offer and placing, after an earlier GBP1.5 million placing was rejected by shareholders at a May extraordinary general meeting. That placing had been plagued by confusion over the size of shareholdings in the company, including those of Judith Williams and her son and of Metal Tiger PLC.
The new offer, made on the basis of 5.534 new shares for each one existing share, will see the issue of up to 3.89 billion shares at a price of 0.09 pence, a 65% discount to New World's closing price on May 18, the last day prior to the stock's suspension, but only a 5.3% discount to its price on April 28, the last day before the announcement of the original placing.
New World's statement on Monday came just after the company said it had received a document notifying it of a group of shareholders led by Mathew Benjamin Turney, who is known for writing for website shareprophets.com. According to the notification from the shareholders, Turney and other shareholders control 5.91% of the voting rights in New World Oil & Gas.
"The concerted action to be undertaken by this group is the recruitment of additional members in order to cross the 10% threshold. Thereafter to requisition a meeting to propose a change of direction for the company," the document said.
New World Oil & Gas said on Monday: In light of recent uncertainty regarding, and the continuing suspension of, trading in the company's shares, the board will be monitoring its shareholder register with a view to seeking to confirm if the persons named in this notification appear on that register, and may make a further announcement in due course."
New World Oil & Gas also issued a "cautionary statement" on Monday. "Given the continuance of commentary on unauthorised and unregulated websites, investors and shareholders are warned to exercise caution in dealing in the company's shares and if in any doubt seek the advice of a person duly authorised and regulated by the Financial Conduct Authority," the company said.
In announcing the new open offer and placing on Thursday, the company said: "The past two-year period has been a difficult time for the company. The unsuccessful drilling program in Belize was a major disappointment for the company and the shareholders, as was the failure by Niel Petroleum to complete its equity investment and the failure to complete the Al Maraam SPA."
It added: "The board...believes that the placing and open offer is in the best interests of the company and the shareholders as a whole, in order to allow the company to raise funds to enable it to maintain its current operations and pursue its future plans."
Shares in New World remain suspended.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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