Confusion reigned at New World Oil & Gas (LON:NEW) as it attempted to raise £1.5mln in new funding.
After conversations with shareholders, the oil minnow yesterday said it had drawn up an open offer alternative to a placing that would have meant almost 80% dilution for existing investors.
Today Twitter went crazy on a Takeover Panel statement that private investor Chris Williams, also known on the investor bulletin boards as ChrisOil, had seemingly bought almost 50% of the company on behalf of his mother Judith.
In what looked like a schoolboy error, however, Williams told the Panel that he hadn’t realised the proposed placing had yet to complete - the EGM is next Tuesday (19 May) – and thought he had bought 10%.
The Panel ruled that ChrisOil’s mother would not have to make an offer to buy the rest of New World’s shares but a further twist followed today, as the company rejected an EGM requisition request from the Williams made on 8 May, prior to yesterday’s Takeover Panel statement.
Shares in New World fell 6% to 0.18p today compared to the proposed placing price of 0.05p, but Bulletin Board activity was feverish and much of it in support of a change at New World.
Expect next week’s meeting to be lively.
The FTSE 100 plummeted 120 points to 6,909 ahead of the resumption of trading on Wall Street, with only six members making positive gains.
Leading the way down was budget airline EasyJet (LON:EZJ) despite a record opening half to the year.
The company said foreign exchange rates and an early Easter would likely mean a fall in revenues of four percentage points for the third quarter. Shares dropped 10% to 1,650p.
Conversely, miners led the way forward with gold miners Fresnillo (LON:FRES) and Randgold Resources (LON:RRS) climbing 1.8% to 714p and 1.5% to 4,7701p respectively.
Away from the FTSE 100, Thomas Cook (LON:TCG) was handed an upgrade by Credit Suisse which now reckons the shares will outperform on the travel firm with a target price of 180p.
Shares were almost 3% higher to 157p making it the biggest gainer of the FTSE 250.
In small caps, China gas drilling company Greka Drilling (LON:GDL) is confident it can reignite its fortunes this year. Investors agreed as shares rose 9% to 9p today.
Another big riser was African Copper (LON:ACU). The company issued a correction to an earlier statement that said it would remain subject to the City Code on Takeovers and Mergers once its listing on AIM has been cancelled. Shares climbed 10% to 0.2p.
Meanwhile the biggest gainer of the day was Aurasian Minerals (LON:AUM). The company said it has formed a joint venture with investment company Sahamit Phattana to undertake exploration activities in Laos, South-East Asia. Shares rocketed 120% to 0.7p.
On the other side of the coin, the big faller was media brand building company Reach4Entertainment (LON:R4E) after it said it expects to report a loss in 2014 far below market expectations. Shares plummeted 40% to 0.7p.
Elsewhere, marble quarry owner Fox Marble (LON:FOX) has raised £2mln to pay off an outstanding convertible loan and buy more processing equipment. Shares dropped 5% to 20p.