Investor Maxim Barskiy to become a non-executive director of company
By Devika Patel
Knoxville, Tenn., April 11 - Matra Petroleum plc said it will raise £4.6 million in private placement of shares with investor Maxim Barskiy. Barskiy will also become a non-executive director of the company.
The company will sell 575 million ordinary shares at 0.8p each. The per-share price is a 29.82% discount to the April 10 closing share price of 1.14p.
Barskiy may also receive 5% warrant coverage. The warrants are each exercisable at 1.3p for one year. The strike price is a 14.04% premium to the April 10 closing share price of 1.14p.
Proceeds will be used to advance Matra's operations on its Sokolovskoe Field in Orenburg and to enable a more progressive new ventures strategy.
"Mr. Barskiy's strategic investment is a significant step for Matra," managing director Peter Hind said in a press release. "It puts the company on a sound financial footing and also signifies a change in the company's growth strategy. As well as progressing our knowledge of the Sokolovskoe field, we will be actively considering making selective acquisitions elsewhere in the region as soon as possible.
"Following the strategic investment by Mr. Barskiy announced today, we plan to strengthen our technical and new ventures teams in both the United Kingdom and Russia. In order for future operations to benefit from the experience of the expanded team, the board has decided to defer the drilling of well A-14 until the 3D survey over the entire field is complete, which we plan to commence as soon as possible," Hind said in the release.
Matra is a Chertsey, England-based oil and gas exploration and production company.
| Issuer: | Matra Petroleum plc
|
| Issue: | Ordinary shares
|
| Amount: | £4.6 million
|
| Shares: | 575 million
|
| Price: | 0.8p
|
| Warrants: | 5% coverage
|
| Warrant expiration: | One year
|
| Warrant strike price: | 1.3p
|
| Investor: | Maxim Barskiy
|
| Pricing date: | April 2
|
| Stock symbol: | London: MTA
|
| Stock price: | 1.14p at close April 10
|
| Market capitalization: | £15.45 million
|
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