Petro Matad Ltd - Mongolia-based oil exploration company - Raises gross proceeds of USD9.7 million through the oversubscribed placing for 200.6 million new shares at a price of 3.50p each. Chief Executive Mike Buck subscribed for 2.1 million new shares for a total cost of USD100,000. While substantial shareholder, Petrovis Matad Inc, subscribed for USD2.1 million for 43.3 million new shares. Places further 14.3 million new shares at the same price, raising USD700,000 in a retail offer via PrimaryBid. Notes Shore Capital Stockbrokers and Arden Partners acted as joint bookrunners in its fundraise.
"This fundraise will allow us to commence production from the Heron field, with the completion of the Heron 1 well and the drilling of the H2 and H3 wells," Buck says.
Expects to issue 214.9 million new shares, representing around 24% of enlarged share capital. Says it will apply for placing and retail shares to begin trading on London's AIM market by next Thursday.
Plans open offer to raise up to USD2 million through an issue of 42.6 million new shares, as noted on Wednesday.
Current stock price: 3.44 pence, down 36% on Thursday afternoon
Year-to-date change: down 19%
By Scarlett Butler; scarlettbutler@alliancenews.com
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Petro Matad (MATD)