12th May 2016 11:38
LONDON (Alliance News) - Nostra Terra Oil & Gas Company PLC, the AIM-listed exploration and production company with assets in the US and Egypt, on Thursday said the time is right to restructure in order to support growth and deliver shareholder value.
In a statement, Nostra Terra said it has seen a "recent increase" in the quantity and calibre of assets available for sale, at depressed or distressed prices.
Given that its shares have in recent months frequently traded at below their nominal value of 0.1 pence, Nostra Terra wants to restructure its capital because a company incorporated in England and Wales is unable to issue new shares at below nominal value under English law.
"The board of the company believes that the current market for oil and gas assets presents a rare opportunity. After a prolonged period of low prices, the board considers the time is right to reposition Nostra Terra to take advantage of these conditions," Nostra Terra said in a statement.
In addition, the share price levels at which the existing shares trade mean that small movements equate to large fluctuations in percentage terms in the company's market capitalisation, resulting in increased share price volatility, Nostra said.
The capital reorganisation comprises a sub-division of shares that will create two classes of shares: subdivided shares with a nominal value of 0.002p and deferred shares with a nominal value of 0.098p. That will be followed by a consolidation of every 50 subdivided shares into one new ordinary share of 0.1 pence.
The deferred shares may then be cancelled by the company, or may be bought for one pound and then cancelled. In the event it decides to cancel or buy back the deferred shares, Nostra Terra said it will advise shareholders accordingly.
Shares in Nostra Terra were down 6.7% at 0.0700 pence Thursday.
By Samuel Agini; [email protected]; @samuelagini
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