Investors also to buy company subsidiaries to relieve capital shortage
By Devika Patel
Knoxville, Tenn., Sept. 22 - Offshore Hydrocarbon Mapping plc said it will raise £2 million in a private placement of shares with Sector Asset Management and Euro Trans Skips AS.
The company will sell 20 million ordinary shares at 10p each in two tranches. The per-share price is a premium of about 21.2% to the closing mid-market price on Sept. 21.
Although business conditions for the group have improved somewhat since April, Offshore said in a press release, the marine acquisition component of the group continues to accrue losses. This division continues to consume capital, including capital previously allocated to other areas of the group's activities and significant capital investment will be needed in the near future to replace items of offshore survey equipment which are approaching the end of their useful lives.
In the directors' opinion, the marine acquisition business requires an additional $10 million through Dec. 31, 2011 for working capital and investment which, given the group's financial position and the state of the equity and debt capital markets in general, presents a major challenge. The investors are proposing to provide this funding to OHM Ltd and OHM Malaysia following their acquisition from the company of two subsidiaries, OHM Ltd. and OHM Surveys Sdn Bhd.
The geophysical services company is based in Aberdeen, United Kingdom.
| Issuer: | Offshore Hydrocarbon Mapping plc
|
| Issue: | Ordinary shares
|
| Amount: | £2 million
|
| Shares: | 20 million
|
| Price: | 10p
|
| Warrants: | No
|
| Investors: | Sector Asset Management and Euro Trans Skips AS
|
| Settlement date: | Sept. 22
|
| Stock symbol: | London: OHM
|
| Stock price: | 7.3p at close Sept. 22
|
| Market capitalization: | £7.47 million
|
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