LONDON (Alliance News) - Matra Petroleum PLC Tuesday said it is proposing to cancel the admission of the company's shares trading on AIM in order to complete the reverse takeover of PG-M International LLC.
The US focused oil and gas investment company had been suspended from trading for five months until Tuesday pending a reverse takeover to acquire the remaining 50% of joint venture company PG-M International.
Following the deal, AIM rules require the company's substantial shareholders to agree not to dispose of any interest in their securities for a period of one year from re-admission.
The company said that, on Friday, its two major shareholders, Winpro Ventures Corp and Tricon Energy Finance Ltd are unwilling to be constrained by the rules and consequently the company was unable to complete the reverse takeover.
However, Matra Petroleum said it has secured an extension to its option to acquire the 50% interest in PG-M until May 2, which should give it time to effect the cancellation of its trading on AIM, following which it can proceed to complete the acquisition as a private company.
The company said that it believes the cancellation is in the best interests of shareholders and will allow the company to continue to implement its strategy of acquiring oil and gas interest.
A general meeting has now been planned for April 23 for the purpose of considering a special resolution to approve the cancellation of admission of the company's ordinary shares to trading on AIM.
Matra Petroleum shares were down 2.4% to 1.00 pence Tuesday.
By Tom McIvor; tommcivor@alliancenews.com; @TomMcIvor1
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