Angus Energy Plc (LON:ANGS) has raised £2.2mln of new capital in a share placing, pitched at 4p share which is below the lowest share price over the past year.
The UK onshore oiler, in a statement, highlighted that the injection of funds will allow it to pay down previously set up debt based finance – with YA II PN Ltd and Riverfort Global Opportunities – and to fund work programmes planned at the Balcombe and Brockham projects.
READ: Angus Energy’s Brockham test delivered a lot less than hoped for
"The board has considered the capital structure of the company as being, in the short term, most ideally composed of ordinary equity and we are delighted to have obtained the opportunity, within this very tight timetable, to refinance our facilities accordingly,” said George Lucan, Angus managing director.
“We recognise that the placing price is significantly below historic share price levels and, whilst we did consider forms of pre-emptive issues to shareholders which unfortunately haven't been possible within the timeframe, believe, having considered all factors, that this best positions the company to exploit the value of our asset base as we proceed with our well-defined strategy.
“I look forward to updating shareholders on this and the progress of our forthcoming board appointments shortly."
Angus will issue 55mln new shares at a price of 4p each, and, it will subsequently have some 458.9mln shares in issue.
On Thursday, Angus share closed at 4.8p and the market price was above 12p in early January.