LONDON (Alliance News) - Savannah Petroleum PLC on Friday said a number of its senior management team have subscribed for 1.4 million shares in total, which, along with its share placing, has conditionally raised USD40.0 million.
Savannah on Thursday said it had completed a share placing in which 79.8 million shares were conditionally placed at 38 pence per share.
Savannah requested for its shares to be suspended in January this year after entering talks with another party that, if completed, would have led to a reverse takeover. The stock last traded at 24.00p in January.
However, Savannah said it now plans to terminate those talks, after having completed a USD40.0 million share placing and share subscription, providing the funds needed to develop its existing assets in the second half of 2016 and allowing the company's shares to resume trading on AIM.
Savannah already held the authority to issue 18.9 million of the new shares, which have been issued and raised GBP7.2 million - or USD9.3 million of the total USD40.0 million target. Those shares represent 9.0% of the enlarged issued share capital following that first placing.
A further 60.3 million new shares then were conditionally placed at the same price, raising GBP22.9 million - or the other USD29.7 million needed.
Those shares will be issued only if shareholders grant approval at a general meeting on July 22, and would represent 22% of the company's enlarged issued share capital following that second placing.
Mirabaud Securities LLP acted as sole bookrunner and joint lead manager, and Panmure Gordon (UK) Limited acted as joint lead manager in the placing.
On Friday, Savannah said the issue of 1.4 million subscription shares, on the same terms as the placing, is also subject to the receipt of shareholder approval, with Chief Executive Andrew Knott and a number of other members from the "senior management team" having subscribed for the shares.
If the approval is granted, Chief Executive Andrew Knott will be beneficially interested in a total of 24.2 million shares, or have an 8.8% stake in the company, Savannah said.
By Hannah Boland; hannahboland@alliancenews.com; @Hannaheboland
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