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Ascent Resources falls amid funding uncertainty

Published: 08:44 09 Jul 2014 BST

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Ascent Resources (LON:AST) fell 30% in early deals as it warned investors that it was now looking at alternative funding options due to uncertainties in closing a previously arranged £15mln share sale.

The company had earmarked the cash for the repayment and redemption of outstanding loan notes, as well as the acceleration of Ascent’s Petisovci project.

A £15mln share subscription by Global Power Sources (GPS) was announced in May, but today Ascent said the initial £11.7mln subscription payment had not been received.

It explained that a venture partner of GPS, Salomon Werner had not placed certain funds with GPS as it does not have regulatory clearance to do so. As a result conditions of the subscription agreement with Ascent have not yet been satisfied.

“The board of Ascent is in close dialogue with GPS and WRS, regarding the timing of the receipt of the funds in respect of the initial subscription,” Ascent said in a statement.

“However, the board is now also in discussions with alternative providers of funding, including current stakeholders, in the event that the funds are not received within a reasonable timeframe.”

On AIM, in early deals, Ascent shares were down 27.59% at 0.52p each.

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