Challenger Energy Group PLC (AIM:CEG, OTC:BSHPF) has rejigged the formalities of its equity fundraise to work around regulatory requirements.
The company last week launched and closed a share placing to bring in £5mln of proceeds and it was intended that a separate open offer would follow to raise a further £2mln, and, give qualifying existing shareholders to buy new shares on the same terms.
In a statement, the company told investors that it has subsequently been informed that a prospectus would need to be published in relation to the open offer – because of the amount raised in a prior April 2021 – and, as a result, the company no longer believed it to be in the best interests of the company.
Instead, Challenger has engaged stockbroker Arden Partners (AIM:ARDN) and Gneiss Energy to facilitate a £2mln separate placing on the same terms as the £5mln so that existing shareholders who are qualifying investors can buy new shares.
The company noted that will hold an extraordinary general meeting in order to get approval to complete the funding, with the date of March 4 anticipated.