Monday, 29 Aug 2011
Xtract Energy announced it has raised GBP 3 million from institutional shareholders to help fund the acquisition of the outstanding 50% of shares it does not own in Elko Energy, an explorer of oil and gas offshore Denmark. Its shares have been restored from suspension.
The fundraiser comprises a placing of 240,000,000 new Xtract shares at a price of 1.25 pence, raising approximately GBP 3 million before expenses. Some of the funds raised will be used as working capital for the enlarged group.
Xtract also announced that it has entered into a conditional agreement with YA Global Master SPV to provide potential future funding of up to GBP 12.5 million as part of an equity line facility.
The Elko deal involves Xtract acquired outstanding Elko Energy for 350,245,343 new Xtract shares, which represents approximately 23.3 per cent of the enlarged share capital.
Re admission of the enlarged share capital is expected to take place on September 13th 2011. Following completion of the Elko acquisition, Xtract will no longer be an investing company for purposes of the AIM Rules.
The acquisition remains conditional on approvals by its shareholders. Irrevocable undertakings to vote in favour of the acquisition have already been given by Cambrian Investment Holdings, which holds 37.2% of the existing shares.
A number of directors have agreed to subscribe for, in aggregate, 17,600,000 placing shares at the placing price.
Mr Peter Moir CEO of Xtract Energy said that "We are very pleased to have successfully raised GBP 3 million, the net proceeds of which will be used to fund the costs associated with acquiring Elko Energy Inc and the ongoing working capital requirements of the company.
He added that “Since the new management team have come in, we have strengthened the balance sheet, appointed a new chairman and focused on core projects, while negotiating royalty arrangements for our non core assets, with significant upside potential. The acquisition of Elko and re listing of the company as an operating business completes the turnaround and we anticipate drilling the high impact Luna exploration well in Denmark during the fourth quarter of 2011.”
(sourced proactiveinvestors)
Xtract Energy announced it has raised GBP 3 million from institutional shareholders to help fund the acquisition of the outstanding 50% of shares it does not own in Elko Energy, an explorer of oil and gas offshore Denmark. Its shares have been restored from suspension.
The fundraiser comprises a placing of 240,000,000 new Xtract shares at a price of 1.25 pence, raising approximately GBP 3 million before expenses. Some of the funds raised will be used as working capital for the enlarged group.
Xtract also announced that it has entered into a conditional agreement with YA Global Master SPV to provide potential future funding of up to GBP 12.5 million as part of an equity line facility.
The Elko deal involves Xtract acquired outstanding Elko Energy for 350,245,343 new Xtract shares, which represents approximately 23.3 per cent of the enlarged share capital.
Re admission of the enlarged share capital is expected to take place on September 13th 2011. Following completion of the Elko acquisition, Xtract will no longer be an investing company for purposes of the AIM Rules.
The acquisition remains conditional on approvals by its shareholders. Irrevocable undertakings to vote in favour of the acquisition have already been given by Cambrian Investment Holdings, which holds 37.2% of the existing shares.
A number of directors have agreed to subscribe for, in aggregate, 17,600,000 placing shares at the placing price.
Mr Peter Moir CEO of Xtract Energy said that "We are very pleased to have successfully raised GBP 3 million, the net proceeds of which will be used to fund the costs associated with acquiring Elko Energy Inc and the ongoing working capital requirements of the company.
He added that “Since the new management team have come in, we have strengthened the balance sheet, appointed a new chairman and focused on core projects, while negotiating royalty arrangements for our non core assets, with significant upside potential. The acquisition of Elko and re listing of the company as an operating business completes the turnaround and we anticipate drilling the high impact Luna exploration well in Denmark during the fourth quarter of 2011.”
(sourced proactiveinvestors)
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