Oil company ReconAfrica has cancelled a planned stock promotion campaign led by a Florida-based company whose registered owner had previously been sanctioned by regulators in Canada.
At the time, ReconAfrica said it would pay US$995,000 in cash to FTB, along with granting it two million stock options. But now the Vancouver-based oil exploration company says it is terminating the contract and cancelling the options. ReconAfrica, in a news release last Thursday, said it cancelled the FTB contract on May 10 – before The Globe published its report, but nine days after The Globe first contacted the company with queries about it. The release said the contract with FTB was terminated “prior to the provision of any marketing or investor awareness services.”
ReconAfrica did not respond to The Globe’s questions about Mr. Rudensky and his role in the promotional contract. It also did not respond to a question about whether it would recover the full amount of the US$995,000 payment to FTB Capital. Mr. Rudensky could not be reached for comment.