Petro-Reef Resources Down Sharply After Scrapping Proposed Re-Cap Bid; Resumes Strategic Review
Petro-Reef Resources (PER.V) is down 9 cents at 29.5 cents a share, falling more than 23% after saying it is terminating a letter of intent for a proposed re-capitalization of the company because its would-be partner in the transaction was unable to secure the necessary financing.
The stock fell as much as 16 cents earlier today to a low of 23 cents a share before recovering into their current range.
The proposed deal, announced Dec. 5 following an two-month strategic review, helped reverse an extended slide that saw Petro-Reef shares fall to a 52-week low of 19 cents a share and climb back to a close last Friay at 39 cents.
The company is again resuming the strategic review, with Emerging Equities Inc. acting as its financial advisor. The company said it also is pursuing opportunities identified in a recent reinterpretation of 3D seismic imaging of its oil and gas properties in Alberta.
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