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LONDON (Alliance News) - Baron Oil PLC on Monday said it has raised GBP440,000 through a placing of shares with new investors for working capital purposes and to evaluate the existing portfolio of oil and gas assets.
The AIM-listed company said it issued 550.0 million shares at a price of 0.08 pence each. The placing price represents a discount of 40% to the closing share price of 0.14 pence on Friday.
Baron Oil shares were trading 24% lower on Monday morning at 0.10p each, giving it a market capitalisation of GBP1.4 million.
The company said Executive Chair Malcolm Butler and Managing Director Andrew Yeo participated in the placing, subscribing for 25.0 million and 56.3 million shares at the placing price, respectively.
Following theses transactions, Butler holds 1.4% stake in Baron Oil, while Yeo has 2.9% interest.
Turner Pope Investments Ltd was acting as as the company's placing agent, it said. Baron Oil intends to allot 27.5 million warrants to Turner Pope, exercisable at the placing price at any time for a period of three years.
Following the admission, the oil & gas company said it will have 1.93 billion shares overall.
In parallel, Baron Oil said it is also working to progress further drilling activity in 2019 by bringing in a partner to Peru block XXI.
