leadf
logo-loader
viewi3 Energy PLC

i3 Energy raises up to £30mln to advance Canadian transaction

“We are very grateful to our existing and new investors who have shown confidence in our business plan and growth strategy," said chief executive Majid Shafiq

i3 Energy PLC - i3 Energy raises up to £30mln to advance Canadian transaction

i3 Energy PLC (LON:I3E) confirmed it has raised at least £29mln, with a further £1mln subject to regulatory approval, as it advances its proposed acquisition of assets owned by Gain Energy in Canada.

It comes after the oil and gas company last week struck a deal to concurrently sell a package of the Gain assets to a third party, Harvard Energy, for C$45mln (US$33mln) which meant the net acquisition cost was reduced to C$35mln (US$26mln).

READ: i3 Energy agrees quick-flip of Saskatchewan assets

In the share placing, some 568.4mln new shares are being issued at a price of 5p. The additional placing will see the issue of 12.65mln, if approved.

"We look forward to the completion of this placing and subscription, which will allow us to acquire our first production assets and transform the company's future potential as we look to build a large production base in the Western Canadian Sedimentary Basin,” Majid Shafiq, i3's chief executive said in a statement.

“We are very grateful to our existing and new investors who have shown confidence in our business plan and growth strategy. Following completion of the Gain Assets acquisition we will focus on production optimisation and cost reduction opportunities in this extensive asset base, in parallel with the ongoing execution of our strategy to rapidly grow production, targeting accretive, material, and complementary assets," he added.

I3 noted that the transaction will deliver it diversification, adding a quality production base to generate cash. It subsequently anticipates it will pay dividends of around 20%-30% of cashflow increasing progressively up to 40%. The transaction will be executed as a reverse takeover under AIM rules.

The company’s shares are expected to resume trading today following a prior suspension.

Quick facts: i3 Energy PLC

Price: 4.06 GBX

AIM:I3E
Market: AIM
Market Cap: £28.24 m
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of i3 Energy PLC named herein, including the promotion by the Company of i3 Energy PLC in any Content on the Site, the Company receives from said...

FOR OUR FULL DISCLAIMER CLICK HERE

i3 Energy team detail £30mln fundraise and Canada growth strategy

i3 Energy PLC's (LON:I3E) Majid Shafiq and Graham Heath speak to Proactive's Andrew Scott soon after confirming they've raised at least £29mln, with a further £1mln subject to regulatory approval. The company last week struck a deal to concurrently sell a package of the Gain assets to a third...

on 11/8/20

2 min read