Glenwick tumbles after walking away from reverse takeover talks

22nd Jun 2016 15:11

(ShareCast News) - Glenwick has resumed trading after directors walked away from much-anticipated talks about a potential reverse takeover deal, sending its shares tumbling.The AIM-listed company's shares were suspended on 23 May following speculation about a deal.Glenwick confirmed at the time it was in "advanced discussions for an acquisition" of a larger company, which under AIM rules would have constituted a reverse takeover.On Wednesday afternoon it said: "The company is no longer engaged in discussions regarding the potential acquisition and has terminated all negotiations."In March, Glenwick raised £0.5m from investors adding to the £0.57m that was on the balance sheet at the end of last year.The exact nature of the anticipated acquisition might be guessed by two consultants Glenwick hired that month: geologist Dr Jacob Poll, a specialist in petroleum exploration; and petroleum reservoir engineering consultant Joanne Kendrick.Glenwick has stated that it has been seeking to acquire on-shore oil businesses in Australasia and North America but has widened its horizons to consider other regions in the search for potential positive returns, including Turkey.Floating in 2005 as German commercial property investor Dawnay, Day Treveria and later dropping the Dawnay Day, Treveria sold its property assets and became a cash shell on 3 September last year and became Glenwick in November. If it does not implement its investing policy within 12 months of 3 September, the shares will be suspended and the company could permanently lose its listing.