Mount Everest Gold (HKG:1815) said two investors will not proceed with previously agreed subscriptions for new shares, according to a Monday filing with the Hong Kong bourse.
The subscriptions would have involved the issuance of an aggregate 100 million new shares under a general mandate.
Mount Everest Gold said the decision constitutes a material breach of the subscription agreements and that the subscriptions will not be completed.
The company said it is seeking legal advice and is considering actions against the subscribers, including potential claims for default interest, damages, and losses arising from the alleged breach.
Shares of the firm were up more than 6% in Monday afternoon trade.