Canadian Overseas Petroleum Limited (LON:COPL) said it has raised gross proceeds of £6mln through a non-brokered private placement of units with institutional investors, family office, high net worth private investors, its chief executive and directors to help fund its purchase of Atomic Oil and Gas.
The company said it has raised the funds through the placing of units at 0.2p each, a 35% discount to its last closing price, with each unit including one share in the firm and one half of one warrant, with a whole warrant entitling the holder to purchase a share at 0.26p for 12 months from the settlement date of the placing.
COPL added that its president and CEO, Arthur Millholland, has acquired 57.5mln units in the placing for £115,000, while directors and the company secretary have subscribed for a total of 15.47mln units.
"This placing entered into just before the Holiday period speaks volumes to the quality of the assets we will acquire under the Atomic acquisition. My participation in the placing along with some new shareholders, and the support of existing shareholders who are well known investors in the Oil and Gas E&P space, some of whom I have known for 20 years, certainly confirms the quality of the opportunity we have entered into", Millholland said in a statement.
"This placing will allow the company to progress the Atomic acquisition. We believe it will give confidence to the debt investors COPL has been in discussions with to provide the debt required to complete the transaction. We will now focus our attention to the next phase to completion", added COPL’s chief financial officer Ryan Gaffney.