LONDON (Alliance News) - New World Oil and Gas PLC Tuesday said the result of its extraordinary general meeting is yet to be determined but said they will be announced "as soon as possible".
The meeting, which took place on Tuesday, is set to determine whether or not shareholders approve a conditional placing that the company conducted in April that caused confusion about an investor's stake in the company.
"The board of New World announces that at the company's EGM held earlier today, the chairman of the meeting demanded a poll. However, due to the recent high level of trading in the company's shares and the requirement to reconcile holdings to the register as at the prescribed time on the record date for the meeting, the result of the poll is still to be determined, but will be announced as soon as available," said the company Tuesday.
The proposed placing conducted in April was for over 2.72 billion new shares at 0.055 pence to raise GBP1.5 million with existing and new investors, subject to approval at the meeting held Tuesday.
However, after the proposed placing was announced, New World said Judith Williams, a new investor, had purchased over 342.3 million shares in the company which was stated as representing a 10% stake in the enlarged issued share capital.
On May 5, New World said it was looking into William's acquisition of shares, including whether there were any regulatory implications and what her intention was. The company said it was unsure what stake Williams held as it was unclear whether it would be based on the original share capital or the enlarged issued share capital following the placing.
That caused a high volume of trading in the company's shares and a flurry of internet commentary.
That was followed by another statement that said Judith Williams would be obliged to extend an offer to the company's shareholders in the event that she receives delivery of shares which carry 30% or more of the company's voting rights.
Last week, the Mail Online said the share purchase by Judith Williams was actually by her son, an oil investor called Christopher Williams, who thought he was only purchasing a 10% stake in the company before realising that his mother may be required to launch a full offer for the company.
On Tuesday, New World said it turned down what it described as a "purported" letter of requisition from Jon Rhodri Williams, Christopher Williams and Judith Mary Williams requisitioning a meeting, which was rejected by the company following legal advice.
No details of why the meeting was requisitioned were released, which rose further questions about the intention of the shareholders. The Williams family were claiming an aggregate holding of 342,328,669 ordinary shares in the company.
On Monday, the company said Judith Williams only held 182.3 million New World shares, which represented a 25.94% stake of the existing share capital of the company, which is below the threshold which may have forced her to make a takeover offer for the company.
However, Judith Williams' stake will remain unclear until the results of the meeting are announced. If the placing is approved, it will enlarge the issued share capital of the company and alter her stake, but below the threshold of needing to conduct any further action.
If the placing is rejected by shareholders, the company will have to rely on the open offer to raise cash, which Cornhill Capital, the placing agent, has agreed to underwrite for up to GBP1.5 million.
New World shares will remain suspended until the results are announced.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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