LONDON (Alliance News) - New World Oil and Gas PLC Monday said that Judith Williams will 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.
New World's shares fell by half after it said it is preparing to go ahead with an open offer of shares at the same price as a proposed placing it announced in April.
New World's shares were down 50% to 0.250 pence per share on Monday afternoon.
The company said earlier on Monday that due to the level of interest in the company's shares since it announced the placing in April, it "feels appropriate" to allow shareholders to purchase shares under the open offer at the same price as the placing of 0.055 pence. Terms of the open offer are expected to be released "in due course".
The company conducted a conditional placing in April of over 2.72 billion new shares at 0.055 pence to raise GBP1.5 million with existing and new investors, which is subject to shareholder approval at an extraordinary general meeting on May 19.
However, after the proposed placing was announced, New World said Judith Williams, whose relationship with the company has not been clarified, had purchased over 342.3 million shares in the company which was stated as representing a 10% stake in enlarged issued share capital.
New World said last Tuesday it was looking into William's acquisition of shares, including whether there are any regulatory implications and what was her intention. The company said it was unsure whether the holding was 10% of its original or enlarged share capital post the placing. Based on the issued share capital before the placing, Williams would be purchasing over a 50% stake in the company, which would require Williams to make an offer for the company.
That caused a high volume of trading in the company's shares.
On Monday, New World said Williams will only be treated as interested in the shares that she has purchased in the event of their delivery into the CREST account of her broker, and that she will have an obligation to extend an offer to the company's shareholders should she receive delivery of shares which carry 30% or more of the company's voting rights.
It added that Williams will not be restricted from selling any shares, unless and until an offer period commences.
Earlier on Monday, New World said it plans to go ahead with an open offer at the same 0.055 pence per share placing price "to enable the company's shareholders to subscribe for shares at the same price," it said.
New World added that Cornhill Capital, the placing agent, has agreed to underwrite the open offer up to GBP1.5 million if it is not approved at the extraordinary general meeting.
"Pending clarification of the matters referred to above, which the company will, so far as it is in their hands, endeavour to do so 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," it said in a statement.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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