Platinova drops merger, faces review

The Toronto Stock Exchange is reviewing the specialty shares of Platinova Resources (PVA.S-T) to see if they meet the requirements for continued listing. Also under review are the common shares of parent Platinova A/S (PAS-T).

Platinova recently scrapped plans to merge with Scandinavian Gold Prospecting (SGP), a private company based in Sweden. The plan was dropped after efforts to raise funds via private placements proved fruitless. The pair had hoped to raise up to $3.1 million by a best-efforts private placement of up to 3.5 million units.

The financing was part of a plan that also involved the consolidation of Platinova’s shares at a rate of one new share for 20 old shares. Platinova was then to acquire all of SGP’s shares at a rate of 27 new Platinova shares for each SGP share.