(Alliance News) - Egdon Resources PLC on Tuesday said that it has raised GBP500,000 via share subscription to progress near term cash generative projects such as Wressle oil discovery in the UK and for general working capital purposes.
The share subscription will be completed in two tranches. Under the first tranche, the company will raise GBP415,164 via issue of 20.8 million subscription shares at 2 pence per share. The tranche includes a GBP141,114 subscription by shareholder Petrichor Holdings Cooperatief UA.
The 2p share issue price represents a 15% discount to the 2.35p closing price on Thursday. Shares in the company were down 15% at 2.00p each in London on Tuesday afternoon.
The second tranche includes GBP56,000 subscription by Managing Director Mark Abbott, Non-Executive Director & Company Secretary Walter Roberts and Non-Executive Director Tim Davies. In addition, Petrichor will buy has undertaken to subscribe for such further number of shares at 2p per share that would maintain its holding in Egdon at 33.99%.
Abbott said: "Egdon is pleased to have secured these funds in difficult market conditions to progress our key near term projects. We are grateful for the continued support from Petrichor, an existing shareholder with extensive knowledge and experience of exploration and production of unconventional hydrocarbons".
By Tapan Panchal; tapanpanchal@alliancenews.com
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