LONDON (Alliance News) - Independent Oil & Gas PLC on Friday said a company from which its main financial backer borrows is being investigated by the UK Financial Conduct Authority.
The FCA is investigating London Capital & Finance PLC, and it has been ordered not to deal with any of its assets and stop all regulated activity while this is ongoing.
LCF, Independent Oil & Gas said, is not a shareholder in its main backer London Oil & Gas PLC, but the latter does borrow from LCF.
Independent Oil & Gas currently has drawn GBP30.7 million of a GBP38.6 million loan facility from London Oil & Gas, which has confirmed all sums agreed to be lent to Independent Oil & Gas are still available.
Shares were 3.6% lower on Friday at a price of 14.10 pence each.