Rame Energy enters administration after Brexit worries hit cash call

AIM-listed Rame Energy has gone into administration after failing to raise £2.8m, blaming market uncertainty caused by the UK's decision to leave the European Union and “difficult market conditions”.

In a statement, Rame said it had tried to raise the cash in a non-brokered arrangement in April but could not complete the deal.

“As a result, the directors, having taken advice, have concluded that the group can no longer continue to trade on a solvent basis. They have, therefore, appointed Andrew Beckingham and Colin Prescott of Leonard Curtis Recovery Limited as Joint Administrators of the Company on 4 August 2016,” Rame said in a statement.

“The directors intend to work with the Joint Administrators to resolve the immediate liquidity issues of the group and maintain Rame as a going concern if possible.”

Shares in Rame were suspended on 1 July 2016 as it was not in a position to publish its audited annual report and accounts within the time frame laid out by AIM rules. The suspension remain in place until the company is able to publish its audited annual report, Rame said.