Business
Capital Reorganisation
Capital Reorganisation.
About this update from Buccaneer Energy Plc
[{"type":"text","content":"\n \nRNS Number : 0791Y Nostra Terra Oil & Gas Company PLC 12 May 2016 \n\n12 May 2016\nNostra Terra Oil and Gas Company Plc\n(\"Nostra Terra\" or \"the Company\")\nSHARE CAPITAL REORGANISATION & NOTICE OF GM\nNostra Terra Oil and Gas Company Plc (AIM: NTOG), the oil and gas exploration and production company with a portfolio of assets in the USA and Egypt, announces a proposed capital reorganisation of its share capital (\"Capital Reorganisation\"). \nBackground to and reasons for the Capital Reorganisation\nThe board of the Company (\"Board\") believes that the current market for oil & 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. Specifically the Board has noted a recent increase in the quantity and caliber of assets available for sale, at depressed or distressed prices. As such, the Board believes that if Nostra Terra is to grow and deliver shareholder value over the coming years it needs to take appropriate steps to restructure the company now.\nThe existing ordinary shares of 0.1p (\"Existing Ordinary Shares\") have in recent months frequently been trading on AIM at a price below their nominal value of 0.1 pence per share. The issue of new shares by an English and Wales incorporated company at a price below their nominal value is prohibited by the Companies Act 2006 and accordingly the ability of the Company to raise funds to take advantage of the aforementioned opportunity by way of the issue of further equity has been inhibited.\nIn addition, the share price levels at which the Existing Ordinary Shares are currently trading means that small absolute movements in the share price represent large percentage movements in the Company's market capitalization, resulting in increased share price volatility. The Directors also note that the number of Existing Ordinary Shares in issue at 4,110,347,691 is an excessive number for a company of the size of Nostra Terra.\nA Circular and Notice of General Meeting is being sent to shareholders today to convene a General Meeting of the Company at which resolutions will be proposed to shareholders to sub-divide and consolidate the issued share capital, amend the Articles of Association, increase the authorised share capital and disapply...