LONDON (Alliance News) - Altona Energy PLC said Tuesday it is proposing to consolidate its shares so that every one thousand existing shares will be consolidated into one, sending its stock price plunging downwards.
Shares in Altona Energy were down 34% at 0.18 pence each.
Following the proposed consolidation, Altona will have 1.6 million shares in issue. The mining company believes the nominal value of its shares is currently "unusually small and unwieldy" which is "capable of causing confusion".
The mining and exploration company's directors are seeking increased authority to allot equity securities up to a nominal value of GBP112,000 and to disapply statutory pre-emption rights to the allotments so authorised.
Altona believes it is in the best interests of the company and unanimously recommends that shareholders vote in favour of the resolutions at the general meeting scheduled for October 17.
The company is also proposing changing its name to Sustainable Energy Group PLC.
Altona is also looking into the possibility of raising funding for a pyrolysis waste to electricity technology joint venture project in Spain.
The timing and size of any fundraise has not yet been decided and the company is seeking to pass the relevant resolutions which will allow its directors to issue additional shares for cash.