LONDON (Alliance News) - Investment company Metal Tiger PLC Wednesday said it has settled the outstanding issues concerning its sale of shares in fellow-listed New World Oil and Gas PLC.
In May, Metal Tiger sold 28.7 million New World Oil shares, which should have led to the company receiving a total of GBP169,891 for the sale. However Metal Tiger only received GBP17,243 reflecting the limited proportion of stock delivered and settled on the company's stockbroking account.
The problem was caused by multiple issues at New World Oil as it tried to raise funds by a placing and open offer earlier in 2015.
On Wednesday, Metal Tiger said it had now received the full amount owed from the sale of New World Oil shares. Metal Tiger received GBP169,891 but had to spend some of the funds on legal costs trying to resolve the issues, leaving the company with proceeds of GBP160,654.
New World Oil shares were suspended in May due to "delays in the settlement of transactions in the shares of New World Oil". The LSE also said it was "monitoring the settlement situation in this security which has continued to deteriorate."
The issues arose after New World Oil conducted a placing and open offer in April which led to confusion over the company's shareholding, including the size of stake that Metal Tiger held. Metal Tiger said in May that it was taking steps to protect its investment in New World Oil following the ongoing issues.
Metal Tiger Wednesday said following the settlement, it can confirm it holds a total of 18.4 million shares in New World Oil, which had a total of 4.59 billion shares in issue in July following the completion of the troubled placing and open offer. This gives it a holding of just 0.4%, having had 6.7% as recently as April.
Metal Tiger shares were down 0.5% to 0.980 pence per share on Wednesday morning whilst New World Oil shares remain suspended.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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