May 30, 2012 / 1:57 PM / in 6 years

Mena Hydrocarbons raises going-concern doubts

(Reuters) - Mena Hydrocarbons Inc MNH.V on Wednesday raised doubts about its ability to operate as a going concern, two years after it was formed to invest in oil and gas assets in the Middle East and North Africa.

The Canadian company, which had a working capital deficiency of about $2.4 million at March 31, said its ability to continue as a going concern depends on the shareholders and directors who have advanced funds to pay costs.

Mena, with total liabilities of $4.7 million as of March, said it would not proceed with its previously announced private placement financing of $8 million.

The company, which has a market value of $11.3 million, also said its first-quarter loss widened to $2.2 million, or 1 cent per share, from $1.4 million, or 1 cent per share, a year earlier.

Mena’s shares, which have lost 93 percent of their value so far in 2012, were down 20 percent, or 1 Canadian cent, at 4 Canadian cents in early trading on the Toronto Venture Exchange.

Reporting by Ankur Banerjee in Bangalore; Editing by Maju Samuel

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