30th Jun 2015 07:34
LONDON (Alliance News) - Pathfinder Minerals PLC shares dropped heavily in early trade on Tuesday after the company proposed a capital reorganisation to allow it to access equity financing in the future and as it battles to regain control of its assets in Mozambique.
Pathfinder said it was proposing a capital reorganisation and would send a circular detailing the plans to shareholders along with its 2014 results.
The company said that while it does have sufficient cash in reserve to continue operating for the foreseeable future, it wants to maintain the ability to equity finance in the future should this be required.
Given its current share price, the company said that it is likely the subscription price for any equity financing it launches would be at a price less than their nominal value, making the share reorganisation necessary.
The company remains in legal proceedings in Mozambique to clarify its stake in CMDN in the country and is still working to regain control of its assets in the country.
Pathfinder, which produces no revenue, said its pretax loss for 2014 was GBP1.1 million, narrowed from a GBP1.5 million loss a year earlier.
Pathfinder shares were down 30% to 0.245 pence in early trade, the worst performer in the AIM All-Share.
By Sam Unsted; [email protected]; @SamUAtAlliance
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