Deal to fund drilling operations, future acquisitions and development
By Devika Patel
Knoxville, Tenn., Dec. 1 - Sound Oil plc said it negotiated a private placement of stock to raise an initial £2 million. The offering may raise a total of £10 million through Astin Capital Management Ltd. and was announced Nov. 10.
The company will sell ordinary shares at 2p per share. The price per share is a 15.61% premium to the Nov. 30 closing share price of 1.73p.
The first tranche of 100 million ordinary shares will settle for £2 million on Dec. 9.
Investors also will receive six three-year warrants for every 10 shares purchased. The warrants are each exercisable at 2p, also a 15.61% premium to the Nov. 30 closing price.
Proceeds will be used for drilling operations, including the Nervesa discovery, future acquisitions and development.
The oil and gas exploration company is based in London.
Issuer: | Sound Oil plc
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Issue: | Ordinary stock
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Amount: | £10 million
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Price: | 2p
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Warrants: | Six warrants for every 10 shares sold
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Warrant expiration: | Three years
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Warrant strike price: | 2p
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Agent: | Astin Capital Management Ltd.
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Announcement date: | Nov. 10
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Pricing date: | Dec. 1
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Settlement date: | Dec. 9 (for £2 million)
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Stock symbol: | London: SOU
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Stock price: | 2.06p at close Dec. 1
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Market capitalization: | £27.88 million
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