LONDON (Alliance News) - LGO Energy PLC on Monday said new shares can be issued in order to settle debts with creditors after the AIM-listed oil and gas exploration, development and production company received shareholder approval.
Shareholder approval means the company has gone ahead with previously detailed plans to issue 120.0 million new shares at 0.25 pence per share to raise GBP280,000 after expenses.
"The net funds will be used for ongoing working capital, to settle some trade creditors and for the payment of agreed sums to the company's lenders, BNP Paribas," LGO said.
Shareholders also approved additional authority to allot shares to raise funds "should the market conditions permit", LGO said.
Shares in LGO were down 6.3% at 0.267p on Monday afternoon.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
Copyright 2016 Alliance News Limited. All Rights Reserved.
