A proposed relaunch of Independent Resources plc LON:IRG) has been cheered by investors, with the oil and gas junior’s share price jumping around 200% in Monday’s early deals.
Sound Energy PLC (LON:SOU) boss James Parsons is joining the company as its new non-executive chairman and the company is proposing to bring in new capital - £650,000 in equity and £1mln via a secured loan. A further fund raise is planned, seeking £1.5mln in an open offer to existing shareholders.
All the new shares are being issued at a price of 0.065p each.
Parsons is to be joined by two other Sound Energy directors, with Marco Fumagalli (Sound non-executive director) and Stephen Whyte (Sound chairman) both appointed to the new board as non-executive directors.
The new funds are being provided by an associate of Continental Investment Partners (an investment group founded by Fumagalli, which also owns 10% of Sound Energy), which with a 29.9% stake will become the cornerstone investor in the company.
The new group, the apparent ‘next Sound’, will be relaunched with the new name Echo Energy Plc.
Like Sound, IRG has been focussed on project in North Africa and the Mediterranean although it has not had the same kind of access to capital and its progress had stalled.
“The changes announced today establish the initial platform from which the company will grow very significantly, in terms of hydrocarbon, human and financial resources,” Parsons said in a statement.
“We will shortly publicly unveil our new strategy, alongside our first growth transaction.
“In the meantime, as part of our ethos of fair treatment to private investors, we would like to invite investors to join us, through the forthcoming open offer, on the same valuation as our cornerstone investor.
“This is a unique opportunity to gain access to a high growth vehicle, led and backed by an experienced and successful team, at the ground floor.”
On AIM, IRG shares had soared around 250% to trade at 0.227p by 9:20am.