(Alliance News) - Shares in Petrel Resources PLC plunged on Wednesday as it announced it hasn't received payment for the second tranche of shares issued to the Tamraz investor group, as well as a potential share lock-in violation.
Shares in the Dublin-headquartered oil & gas explorer were 44% lower at 7.50 pence on Wednesday in London.
The Tamraz group consists or private equity investors, friends and business acquaintances of Non-Executive Director Roger Tamraz and Michel Fayad.
In November, Petrel shareholders gave their approval for the issue of 64.0 million shares at 1.25 US cents to the Tamraz group - USD800,000 in total - which would bring their total stake to 51%.
The payment for the shares was set to be received on Monday. The shares in question have been issued and allotted, but not yet delivered in the form of share certificates to the intended shareholders.
In addition, Petrel said that following recent analysis of its share register, it believes that around 4.0 million shares have been sold over recent days, in violation of a lock-in entered by the Tamraz group over its existing holdings of shares, as a condition of the second tranche.
"Petrel Resources is urgently seeking an explanation of both matters from the Tamraz group and reminding the parties concerned of their lock-in obligations, and an early resolution in the best interests of shareholders," the company said in a statement.
By Dayo Laniyan; dayolaniyan@alliancenews.com
Copyright 2020 Alliance News Limited. All Rights Reserved.
Petrel Resources (PET)