Angus Energy PLC (AIM:ANGS) has raised £675,000 through the placing of 61.4mln shares a few days after Sound Energy PLC (AIM:SOU) pulled out of a takeover deal.
The net proceeds of the placing will be applied towards working capital and general costs, Angus said.
READ Sound Energy walks away from Angus Energy deal
"When we entered the formal sales process in January we had expected that a result would have been concluded by this time. In view of the extended due diligence exercise being performed by bidders for some or all of our interest in Saltfleetby and to meet legal, advisory and G&A [general & administration] costs, this issue of shares, representing less than 5% of the enlarged capital of the group, is being undertaken to ensure that the group remains funded until a more substantial revenue stream is available from Saltfleetby,” explained George Lucan, the chief executive officer of Angus Energy.
The shares have been placed at 1.1p a throw. In the first half-hour of trading on Monday shares in Angus were trading 2.0% lower at 1.2p.