By Devika Patel
Knoxville, Tenn., May 15 - Otto Energy Ltd. said it has reached agreement with Euroz Securities Ltd. to raise A$15 million in a private placement of stock.
The company plans to sell 38.46 million shares at A$0.39 per share.
Of those, 14.7 million shares will be issued immediately and 22.95 million shares will be issued after Otto Energy gets FIRB approval. The remaining 770,000 will be sold after the company gets shareholder approval. A notice of meeting in this regard will be sent to shareholders shortly.
Proceeds will be used for drilling, costs associated with the company's 50% farm-in to two permits in Po Valley, Italy, site surveys in the Philippines in preparation for drilling and working capital.
Otto Energy is a West Perth, Australia-based oil and gas company.
| Issuer: | Otto Energy Ltd.
|
| Issue: | Shares
|
| Amount: | A$14,999,400
|
| Shares: | 38.46 million
|
| Price: | A$0.39
|
| Warrants: | No
|
| Agent: | Euroz Securities Ltd.
|
| Pricing date: | May 15
|
| Stock symbol: | Australia: OEL
|
| Stock price: | A$0.46 at close May 15
|
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