Thursday June 18, 2015: Shares in Orca Energy (OGY) crashed by more than 50 per cent this morning
after the company revealed that the deal under which controversial businessman Nathan Tinkler was to take charge had collapsed.
Under the proposal, Tinkler, along with businessmen John Robinson Snr and Nick Paspaley, were to inject a total of $20 million into Orca via a share placement in what was essentially a reverse takeover.
Tinkler was to become executive chairman and Robinson Jnr was to join the Board.
But Orca said today that concerns raised by the ASX meant it was unable to meet key conditions of the deal.
The agreement required Orca to secure all necessary ASX regulatory approvals. But Orca said that the ASX had told the company it would enforce the listing rules which enable it to suspend companies deemed to be cashboxes.
Orca said it had failed to agree on an alternative structure for the placement and therefore it would not proceed.
Orca shares were trading 1.2c lower at 1.1c.