StockMarketWire.com - TomCo Energy said its broker had cancelled a £532k share issue amid fears its reputation could be hurt after the company experienced delays at a key project.

SVS Securities had also resigned as the company's broker and TomCo Energy's shares had been suspended from trading.

'The board confirms that all material information was in the public domain at the time the placing agreement was entered into,' TomCo said.

'Accordingly, the company is taking legal advice as to whether SVS's termination of the placing agreement is valid.'

On 8 November, TomCo announced that field testing work at its Holliday block in Utah had been delayed, potentially until the second quarter of next year, due to ongoing technical problems.

SVS had subsequently claimed that there had been 'a material change in the business' and that its 'name or reputation is likely to be prejudiced by continuing as the company's placing agent'.






At 9:38am: [LON:TOM] TomCo Energy PLC share price was 0p at 5.5p



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