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(Alliance News) - Ascent Resources PLC on Friday proposed a share consolidation, to turn every 100 shares into one share as it announced its intent to raise GBP800,000 through the placing of 16 million shares at a post-consolidation price of 5.0 pence each.
The placing is equivalent to 1.6 billion shares at 0.05p each pre-consolidation. The stock was trading 34% lower at 0.062 pence each.
The oil & gas exploration company said it is proposing the share re-organisation as it considers the move to be in the best interests of the company's long-term development. Following the consolidation, Ascent will have 30.2 million shares in issue.
Following the consolidation and admission of the placing shares, the Ascent's total issued share capital will comprise 46.2 million shares.
The London-based company also said Chair Louis Castro and Finance Director Colin Hutchinson will step down at the next general meeting. No reason was given for their resignation.
James Parson is proposed to join as executive chair. Parsons is currently executive chair of Regency Mines PLC and non-executive chair of gas exploration company Echo Energy PLC and Coro Energy PLC.
Ascent has also proposed that Ewen Ainsworth and Leonardo Salvadori join the company as independent non-executive directors.
Ainsworth is currently a non-executive director at Regency Mines and chief executive of consultancy & investment company Discovery Energy Ltd. He is also non-executive chair at Nostra Terra Oil and Gas Company PLC.
Salvadori is currently managing director for Coro Energy in Italy and has over 35 years of operational and technical oil and gas experience, Ascent said.
Separately, Ascent confirmed it has cancelled its existing Equity Sharing Agreement with RiverFort Global Opportunities PCC Ltd. The outstanding USD421,943 loan with Riverfort has been re-negotiated to a two-year coupon free bullet with conversion rights for the lender at 0.075 pence per share, Ascent said. The 43 million warrants initially to be awarded to Riverfort, as announced in September will no longer be awarded.
By Ife Taiwo; ifetaiwo@alliancenews.com
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