Abjac suspending operations from Oct 1

Oil exploration partnership Abjac Mazal (TASE:ABJA) says it is suspending all its activities from October 1, including payment of salaries, because of its financial condition.

Until October 1, the company will continue to operate as usual, including to drill and conduct production tests.

The suspension will remain until the results of financing moves the company means to make shortly are in. Once it has the results, Abjac says, it will reconsider its operations.

The partnership is trying to raise up to NIS 5 million through a rights issue.

Its legal counsel, attorney Yoav Caspi, commented that Abjac will be submitting an initial draft prospectus to the Israel Securities Authority within days. It hopes to raise the money by the end of October or early November, he says.

The company will remain in suspended animation for just a few weeks, he added.

As the offering will not be handled by underwriters, the sum in question is variable.

For the first quarter Abjac reported losing a net NIS 1.2 million. At the end of the first quarter it had only NIS 900,000 cash in hand. Series F options expired at the end of June 2002, but only 31.7 million options were exercised, bringing the partnership only NIS 384,000.

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