21st May 2019 18:23
LONDON (Alliance News) - Coro Energy PLC said Tuesday it is no longer going ahead with the open offer it announced more than a year ago.
In February 2018, Coro said it was planning to undertake an open offer to raise GBP2.0 million, through the issue of 45.7 million shares at the same price as a placing that took place at the beginning of 2018.
Coro raised GBP13.4 million through a placing and subscription, priced at 4.38p per share, to help the company's acquisition of Sound Energy PLC's Italian portfolio.
At the time, Coro was hoping to raise the additional money by offering existing shareholders the opportunity to buy new shares at the same price as the placing.
On Tuesday, however, Coro explained that the company's shares since the placing have traded below the placing price.
The company said: "The directors do not therefore believe that it would be a productive use of company funds to proceed with an open offer at a premium to the prevailing share price at the current time. As a result, the company no longer intends to proceed with the previously intended open offer."
Shares in Coro Energy closed up 7.0% Tuesday at 2.30 pence each. On February 16 last year, the company's shares were trading at 5.20p.
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Coro Energy