Forte Energy plummets as asset acquisition talks end

Shares in Forte Energy (FTE) plunged more than 20% - on news that it had ended talks regarding "a potential asset acquisition and/or corporate transaction".

The company, focused on the exploration and development of uranium assets in West Africa, said it was "assessing alternative opportunities" and would update "if and when" any developments occur.

Trading in the company shares resumed on the Australian Stock Exchange, having been suspended since 1 February.

Additionally, the company announced it has raised gross proceeds of £587,177 before expenses, under its £10 million Equity Financing Facility (EFF) with Darwin Strategic.

The funds will be used to "accelerate exploration targets on its existing assets".

Investor view

Interactive Investor discussion board user 'ashershares' summarised the news as "not good", but added that "maybe [it could be] a good long term buying [opportunity] with the funding sorted."

Users 'naughtyneil' and 'baukinkaur' agreed the stock was a "hold" in the "long term". 'baukinkaur' said he would "buy more if we hit the floor", while 'naughtyneil' said his "hold" rating would not be for "too long".