LONDON (Alliance News) - New World Oil and Gas PLC Tuesday said it is currently seeking clarification about shares that were purchased by Judith Williams in April, and warned shareholders to "exercise extreme caution" about dealing in the company's shares.
On April 30, the company said that Williams had purchased over 342.3 million shares in the company which was stated as representing a 10% stake in New World. On Tuesday, the company said this took into account the shares issuable under the placing it conducted on April 29, which is subject to shareholder approval at an extraordinary general meeting to be held on May 19.
"The company is seeking clarification as to the basis of the acquisition of the shares giving rise to this notification and whether the percentage should be stated by reference to the current issued share capital, i.e. not including the placing shares which have yet to be issued, and if so whether there are any regulatory implications," said the company on Tuesday.
"The company has noted various internet commentary concerning inter alia the high volume of trading in the company's shares last week and speculating as to the intentions of various alleged shareholders. Anyone wishing to deal in the company's shares is warned to exercise extreme caution in relation to any views or supposed information offered by these sites," it added.
New World noted the increased level of trading in its shares since the placing and said it is "considering various courses of action in relation to the placing to ensure the wider interests of shareholders are considered".
Among other things, the company is seeking advice on the allotment of company shares at the placing price to the company's shareholders via a rights offering or otherwise, it said.
"Pending clarification of the matters referred to above, which the company will, so far as it is in their hands, endeavour to do as soon as possible, investors and Shareholders are warned to exercise caution in dealing in the company's shares and if in any doubt seek the advice of a person duly authorised and regulated by the Financial Conduct Authority," said New World.
New World shares rose by 18.4% to 0.101 pence per share on Tuesday morning.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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