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Bagir Group tumbles as equity injection is delayed

Last updated: 06:31 31 Dec 2018 EST, First published: 04:31 31 Dec 2018 EST

Tailors at work

Tailoring outfit Bagir Group Limited (LON:BAGR) saw its shares shredded after a planned equity injection ran into delays.

Shares in the company tumbled 19% to 1.5p after the company revealed that it is taking more time than first envisaged for Shandong Ruyi to receive Chinese Government approval for its proposed US$16.5mln investment into the company in return for a 53.7% stake.

As a consequence, the company has agreed a new unconditional completion date for the transaction of 30 May 2019 by which time Shandong Ruyi will pay the remaining cash payment of US$13.2 million.

The company said it is to part company with chief financial officer, Udi Cohen.

Cohen will pick up his cards at the end of March to be replaced on an interim basis by Dotan Levy, who is currently group financial controller.

Other than that, the company said it is trading in line with expectations.

9.30am: More spuds? Yes, but of the well drilling variety ...​

Had enough of spuds over the winter solstice period?

Well, if you are a shareholder in Serica Energy PLC (LON:SQZ), here is one more spud you might welcome; the company has announced the spud of the ENI UK Limited operated Rowallan exploration well 22/19c-G, in which Serica has a 15% interest.

Spudding is the process of beginning to drill a well.

Serica said the well is targeting the high-pressure, high-temperature gas condensate Rowallan prospect, which comprises a significant structural fault and dip-closed trap in the east of Block 22/19c in the Central North Sea.

Shares in Serica were up 2.5% on the news at 123p, having started 2018 at around 86p.

READ: Serica Energy shares jump as North Sea field is allowed past US Iran sanctions

In contrast, sector peer Cabot Energy PLC (LON:CAB) had grim news for its shareholders.

The company has insufficient funds to pay off trade creditors and is low on working capital so it is talking to its major shareholders to see whether they will support a fund-raising.

As is the way in these cases, any equity issue is likely to be at a deep discount to the current share price, hence the 59% fall this morning to 0.625p.

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