LONDON (Alliance News) - Coal of Africa Ltd Wednesday noted the recent announcement on the Shanghai Stock Exchange by Beijing Haohua Energy Resource Co Ltd that one of its subsidiaries plans to acquire no more than 215 million shares in Coal of Africa for a maximum price of 5.5 pence per share.
Coal of Africa shares were quoted up 2.4% at 3.00 pence Wednesday morning.
In 2012, Coal of Africa sold USD100 million in shares to China's Beijing Haohua Energy.
In the company's interim results published in March, Coal of Africa said its ability to continue as a going concern and to pay its debt as and when they fall due is dependent on, among other things, obtaining additional funding from either financial institutions or the equity markets to meet its planned commitments.
In line with this, Coal of Africa is currently in discussions with a number of parties, including strategic investors, regarding a potential conditional capital raising for the company.
"At this time, the discussions remain incomplete and no binding agreements have been entered into," Coal of Africa said.
By Anthony Tshibangu; anthonytshibangu@alliancenews.com; @AnthonyAllNews
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