LONDON (Alliance News) - Wildhorse Energy Ltd shares slid in London Thursday after it said it will raise up to AUD1.4 million before costs in a rights issue, using the money to develop existing products and identify and evaluate new uranium and other resource projects.
Wildhorse said it is offering shareholders one share for every two shares that they currently hold, at AUD0.07 a share, meaning it could issue up to about 205 million new shares. The offer is non-renounceable, meaning the rights cannot be transferred or sold.
"Wildhorse Energy continues to examine all scenarios regarding its development and the greatest return available for shareholder funds. We have entered a conclusion phase with regards the sale of the company's coal assets to Linc Energy and we continue discussions with the Government of Hungary on the Mecsek Hills Uranium Project, with the aim of completing an agreement for its development," Managing Director Matt Swinney said in a statement.
Wildhorse Energy shares were down 14.3% at 0.6 pence in London Thursday morning, making it one of the biggest decliners on the AIM market. The company is also listed on the Australian Securities Exchange.
By Steve McGrath; stevemcgrath@alliancenews.com; @SteveMcGrath1
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