(Sharecast News) - Ireland-based energy company Providence Resources announced its intention to conditionally raise up to $1.8m before expenses on Friday, to fulfil its near-term working capital needs.
The AIM-traded firm said the funds would be raised through the issue of placing and subscription securities, each of which would consist of one new share and one 1.5p warrant, at a price of 1.5p each.
It said the fundraising would comprise a placing to institutional and other investors, and a subscription by certain investors.
The price represented a discount of 35% to the company's closing price on 16 June.
"The fundraising is required to address the company's near-term working capital requirements as well as to pursue its lease undertaking application for Barryroe," the board said in its statement.
"Providence continues to press the Irish Department of the Environment, Climate and Communities (DECC) for consent to its Barryroe lease undertaking application.
"In addition, some of the proceeds will be used to progress preparation for an appraisal well in 2023, subject to award of the lease undertaking."
At 1258 BST, shares in Providence Resources were down 26.09% at 1.7p.
Reporting by Josh White at Sharecast.com.
