Sound Energy slipped 11 per cent to 1p this week after the Moroccan authorities slapped a $14million tax bill in relation to a previous transfer of interest between two of its subsidiaries.
The firm said this assessment is based on a misunderstanding and is formally refuting it.
Just over two months ago, the junior upstream company raised £2.75million reaching a cash balance of £4.2million, at the time estimated to last until next March.
Sound Energy slipped 11 per cent to 1p this week after the Moroccan authorities slapped a $14million tax bill in relation to a previous transfer of interest between two of its subsidiaries
The news is just the last blow for a stock that was trading at 93p just three years ago.
The explorer has focussed on gas assets in Italy and Morocco but ultimately disappointed in both countries.
The Italian portfolio was sold to Coro Energy in April 2018, when the Tendrara assets were still expected to hold 377bn cubic feet of recoverable gas based on analysis of just 1 per cent of the total permit area.
However, in May 2019 Sound did not find commercial flow rates so it started a partial divestment process.
No transaction has been completed as of today, but in the meantime chief executive James Parsons, chief financial officer JJ Traynor and exploration director Brian Mitchener have all jumped ship.
Looking at the wider market, the AIM All-Share dipped 0.6 per cent to 957, outperforming the FTSE 100 index, down 1.3 per cent to 5,876.
The roll-out of 5G networks and renewables utilities has sparked interest in geospatial analytics, which collects location data from GPS and satellites to identify patterns.
The market is expected to jump 13 per cent to S$96billion in five years, with stocks such as IQGeo rising 21 per cent to 69p in the year to date.
This week fellow software company 1Spatial, up 12 per cent to 30p in the same period, saw a crosstrade between shareholders, with Oryx International chopping its stake to 9.96 per cent from 10.86 per cent and Canaccord Genuity upping its holding to 14.1 per cent from 13.3 per cent.
Among the fallers, music provider 7digital plans to support its projects within the spheres of home fitness, artist monetisation, and social media. This demands new funding. Placing new shares at 23 per cent discount this week prompted a 32 per cent price drop to 2p.
ImmuPharma also stood out after tapping investors. The pharma company lost 23 per cent to 12p after completing the issue at 24 per cent though it was launched in response to investor demand.
Meanwhile, smart meter network specialist CyanConnode tumbled 14 per cent to 3p after delays in an Indian contract saw revenue slump 44 per cent to £2.5million in the 15 months to March, compared to the previous 12 months.
Software company for the financial industry Arcontech shed 9 per cent to 181p after saying the outlook remains uncertain with its traditionally long and complex sales cycles potentially getting even longer.
Elsewhere, Revolution Bars dipped 6 per cent to 15p despite announcing trading has been ahead of expectations thanks the UK government’s ‘Eat Out to Help Out’ discount scheme in August.
Riser Kodal Minerals soared 222 per cent to 0.1p after agreeing with Chinese state-owned engineering firm Sinohydro to collaborate on the Bougouni lithium project, in southern Mali.
Fellow miner Alien Metals rocketed 91 per cent to 0.8p despite placing shares at a 36 per cent discount to raise £1million to fund exploration in Mexico and Australia, while also promoting technical director Bill Brodie Good to chief executive.
Sticking to the mining sector, Orosur Mining shot up 47 per cent to 6p after NYSE-listed mining giant Newmont paid the final cash payment of $500,000 for the Anzá gold project in Colombia.
Commercial kitchens specialist Filta Group jumped 16 per cent to 104p after securing exclusive rights to a new disinfectant which can help combat the spread of coronavirus, as it doesn’t require rooms to be emptied nor extensive use of personal protective equipment.
Allergy Therapeutics advanced 12 per cent to 18p after expanding its licensing agreement with vaccine groups Saiba and DeepVax to take it into oncology. The group developed a virus-like particle technology for a peanut allergy candidate which has shown early promise.
Finally, engineer Renew added 11 per cent to 465p after upgrading its full-year results expectations on the back of strong trading.