Lansdowne Oil & Gas (AIM:LOGP) shares were down 29% in Thursday morning’s deals as the micro-cap Irish oil firm announced up to £200,000 of equity funding.
It intends to sell two tranches of new shares with an initial £60,000 raise, 60mln shares at 0.1p, alongside a conditional £140,000 to be raised at the same price, subject to shareholder approval at an EGM slated for 9 August.
The ‘light on’ money is expected to cover working capital for the company up until October.
This is intended to tide the company over whilst its dispute with the Irish government progresses.
Today, it noted that the company’s legal advisors on 19 June submitted a letter giving notice which required the Replublic of Ireland to participate in discussions with a view to settling the dispute within three months.
In the meantime, Lansdowne said it will “advance discussions with external litigation funders, many of whom have already approached the company”.