New World Oil and Gas, the Jersey based exploration and development company with projects in Belize and Denmark, just called an emergency meeting with its shareholders after the company’s stock rocketed then plunged because a British B&B owners son accidentally bought out half the group’s shares.
New World said in a regulatory statement:
New World notes both the movement in the Company’s share price and speculation about the Company as it appears on websites, but comments now that there are no further corporate developments which require an announcement.
It added that it would like to hold an extraordinary general meeting (EGM) in order for shareholders to vote on the company launching an “open offer” (rights issue). A rights issue is when a company gives shareholders the opportunity to purchase stock at a lower price than that of the current market price.
The rights issue would not only raise money for the group but it will also pare down the leading stakeholder, who is the owner of a small bed and breakfast establishment in the sleepy town of Malvern Hills, Worcestershire in England, which may be forced to buy out New World because her son “accidentally” purchased half of the company shares.
Judith Williams, the owner of Wyche Keep Country House, is the subject of a Takeover Panel discussion because her son, Christopher, bought 342 million shares in the oil company, which explores and produces energy in Belize and western Denmark, believing that he was snapping up a 10% stake in the group for £1.5 million ($US2.4 million).
Unfortunately, his share purchase, on behalf of his mother through a broker, ended up being at 48.7%. Now, because she is a significant stakeholder, Britain’s Takeover Panel said that she may have to make a mandatory bid for the rest of the company under current law. However, the final decision has not yet been made.
New World’s stock price is 59% lower than a year ago. However, the price has fluctuated from being nearly 300% up with the massive share stake buy by Williams. It then tumbled again.
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