(Alliance News) - Attis Oil & Gas Ltd on Thursday said trading in its shares has resumed after a proposed acquisition fell through and announced a GBP600,000 fundraise.
The company said in January it has signed a binding memorandum of understanding with an undisclosed "North American focused oil and gas company" for the possible acquisition of that company. This would have been considered a reverse takeover under AIM rules, and so Attis's shares were suspended.
However, due to various factors including Covid-19's impact on oil prices and the difficult economic conditions at present, talks with the target have ended and the MOU was terminated.
As such, trading in Attis's shares recommenced at 0730 BST. Attis's shares last closed at 0.07 pence in January, but were trading at 0.02p in London on Thursday afternoon, down 77%.
Further, Attis announced a GBP600,000 fundraise as well as conversion of a bridge loan. The fundraise consisted of a 4.35 billion share placing priced at 0.0115 pence per share to raise GBP500,000 plus a broker option at the same price which raise GBP100,000. This broker option over 869.6 million shares was fully subscribed.
The placing was undertaken by newly appointed broker Peterhouse Capital Ltd. Peterhouse was granted option over the 869.6 million broker option shares, which it exercised so as to allow existing Attis shareholder to participate in the fundraise on similar terms to the placing.
The bridge loan conversion emerged from Attis having raised GBP420,000 in October 2019 through a five-month senior secured funding facility which was due for repayment on or before March 21. The facility's terms included 10% interest per annum along with a fixed and floating charge over Attis's assets and the issue of 460 million five-year warrants priced at 0.1p each.
The repayment date was extended on a monthly rolling basis and holders were offered the chance to convert the loan and interest in 0.0075p along with the re-pricing of warrants to 0.015p each.
Holders of GBP370,543 of the bridge loan have opted to convert and this 4.94 billion shares were issued at 0.0075p per share. The remaining bridge loan holders will be repaid using placing proceeds.
Executive Chair Paolo Amoruso holds a GBP64,959 interest in the bridge loan, while Chief Operating Officer Thom Board has a GBP26,527 interest. Sebastian Marr, an 11% shareholder, has a GBP158,594 interest in the loan.
By Anna Farley; annafarley@alliancenews.com
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