LONDON (Alliance News) - Shares in Victoria Oil & Gas PLC dropped on Wednesday as the natural gas producing firm said it was targeting a GBP12.6 million fundraise and announced a number of board changes.
Victoria Oil & Gas shares were trading down 13% at 13.16 pence each.
The company entered into a subscription agreement for 50.0 million shares, at an issue price of 13p each, to be acquired by its largest shareholder YF Finance Ltd for a total of GBP6.5 million.
YF Finance is already interested in 11.1 million shares, representing 7.37% of the company's existing share capital.
Victoria Oil & Gas also will seek to raise further GBP6.1 million via a share placing, also at 13p each.
This means YF Finance's stake is likely to rise above 20%.
The placing is being conducted as an accelerated book build via the company's joint brokers, Shore Capital Stockbrokers Ltd and FirstEnergy Capital LLP. Admission of the new shares to trading is expected on April 4.
Furthermore, Victoria Oil & Gas said that on completion of the fundraising, Chair Kevin Foo will retire as director of the company.
Roger Kennedy, currently senior non-executive director, will assume the role of chair, while two additional independent non-executive directors will be appointed to the board.
