African Potash staggers to new low after nomad Cantor resigns

Broker Cantor Fitzgerald has warned African Potash that it will resign as the AIM-listed company's nominated adviser from 7 December 2016, sending the fertiliser developer's shares to a mind-boggling new low.

If the company does not appoint a replacement Nomad by 8 December its shares will be suspended from AIM and if it fails to appoint a replacement within a month it will be delisted.

However, African Potash was pleased to report it was "well progressed in meaningful discussions" with a potential replacement Nomad, "although there can be no assurance that an appointment will be made".

In September, with the shares having fallen from last year's 3.3p high to 1.5p, the company sent them down to 0.2p as it issued a 235.3m of them to raise £0.5m in a subscription offer, plus a potential near-71m more for a potential over-allotment to the offer, alongside almost 18m more issued to settle an outstanding liability.

There were 1.14bn shares in issue as a result of its actions, it confirmed, with the funds raised and relaxed terms to its bridge loan, hoped to provide the company with "a solid platform" from which to grow its ambitious fertiliser trading programme.

Said executive chairman Chris Cleverly: "Shareholders will be aware, from our recent announcements, of the traction which we are gaining in the market and we are confident that this funding will assist in revenue generation. We are progressing with these initiatives and have others in the pipeline and will update the market accordingly as we progress.

Just as the shares seemed to have found their floor at 0.2p, news of Cantor's resignation pulled the rug out and sent the shares down a further 44% to a new low of 0.123p.