LONDON (Alliance News) - Wildhorse Energy Ltd shares dropped on Friday after the company said it would cancel its rights issue and undertake a restructuring of its board, operations and strategy in the wake of Linc Energy Ltd walking away from a deal to buy its coal assets.
Wildhorse shares were down 11% to 0.356 pence on the back of the news, putting it among the biggest fallers on the AIM All-Share.
The group, which develops underground coal gasification and uranium projects in Hungary and central Europe, had warned its AUD1.4 million rights issue could be pulled earlier this month after Linc Energy, a Singapore-listed energy group, walked away from a deal to buy Wildhorse's uranium and underground coal gasification assets.
The pair had signed a memorandum of understanding in February after Wildhorse ran out of money to fund its administrative and exploration plans for the next year.
A a result of its decision to cancel the rights issue, which closed on August 13, the company will return all funds to subscribing shareholders.
In addition, Wildhorse said it will now conduct a review and may undertake a restructuring of its board, operations and strategy.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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