Touchstone Exploration Inc (AIM:TXP, TSX:TXP, OTC:PBEGF) shares slumped on Monday after the oil and gas junior was forced to close its previously announced £15.38 million equity raise with only $5.05 million proceeds in its coffers.
Some £10 million pledged by Portillion Capital Asset Management had still not been received by the time a 27 June deadline passed.
Touchstone said it is now reviewing its options following Portillion’s failure to fulfil its subscription.
In a stock market statement, it added: “Touchstone remains focused on securing the funding necessary to continue its 2025 capital program.”
It also added that it is reviewing its position regarding obligations under a loan with Republic Bank Limited, which previously stipulated that some $18 million of equity proceeds should be raised before the end of 2025.
Touchstone added: “Following the completion of drilling the Cascadura-5 well, the company will defer further activity under its 2025 capital program.
“Considering whether the outstanding placement funds are ultimately received, Touchstone will evaluate financing options in the near term to satisfy the requirements of the loan agreement in relation to the raising of equity capital, and to be able to resume its 2025 capital program.”
In London, the shares dropped 4.45p or 22.25% to 15.55p.