Challenger Energy Group PLC (AIM:CEG, OTC:BSHPF) has confirmed it will raise an additional £2.3mln of new capital through the ‘broker option’ facility announced at the same time as last week’s share placing.
It allowed qualifying investors to participate in the fund raise on the same terms as the placing. The broker option, delivered via Arden Partners (AIM:ARDN), sees 2.27bn new Challenger shares issued to participating shareholders.
In all, Challenger has raised some £7.3mln of gross proceeds – across a firm placing, a conditional placing and the broker option.
"The broker option - being the final component of our overall current fundraising programme - received strong support from existing shareholders,” said chief executive Eytan Uliel.
“We have thus worked with our broker and financial adviser to ensure that all demand from existing shareholders will be met.”
Uliel added: “Through this process we will have successfully cleaned-up and strengthened the balance sheet, refocused the business, its strategy, board and management, and placed this company in a position where it can begin to chart a new course for the future, on a firm financial footing.
“It has not been an easy road to get here, and I would especially wish to thank all shareholders - existing and new - for their patience and support.
“The entire Challenger Energy team is now focused on the core tasks ahead: to build production, to build cash flow, and to restore shareholder value."
A general meeting is expected to be held on or around March 4 to gain shareholder approval to issue shares for the conditional placing and the broker option.