(Alliance News) - Oil and gas projects and oilfield services firm Range Resources Ltd said on Monday it has signed a subscription agreement with a new investor, Sramek BioDynamics Holdings Ltd.
The subscription for new shares is expected to raise around GBP750,000 for the company with 1.54 billion shares to be issued at a price of 0.049 pence each, a 6.7% discount to Range's Friday closing price of 0.0525p.
The new shares represent 15% of the company's share capital prior to the subscription.
As part of the subscription, Sramek can nominate up to two non-executive directors to Range's board, and will able to do so for as long as it holds at least a 10% stake in Range.
The proceeds from the subscription will be used for general working capital purposes.
"We are delighted to have secured an investment and support from a new shareholder to give the Company the flexibility for additional working capital as we work to complete transformative conditional debt restructure and RRTL sale announced on September 3," said Range's Executive Chair Kerry Gu.
"We are also delighted with the recent positive share price trend and hope it continues as we deliver on our key short-term objectives," Gu added.
London-listed shares in Range were down 4.8% at 0.05p each on Monday.
The firm currently has 10.24 billion shares in issue, meaning Sramek will hold around a 13% stake in the company on admission of the new shares, which will bring Range's issued share capital to 11.78 billion.
