LONDON (Alliance News) - Victoria Oil & Gas PLC said on Thursday it has raised GBP13.6 million through an oversubscribed placing and subscription announced on Wednesday, to go towards its Logbaba and Matanda projects in Cameroon.
Shares in the oil & gas company were up 6.7% at 14.14 pence on Thursday.
Victoria raised a total of GBP13.6 million, placing 59.4 million shares, as well as in a reduced subscription by Victoria's largest shareholder YF Finance for 45.0 million shares, at a price of 13 pence per share.
Following the subscription, YF Finance now holds a 22% interest in Victoria Oil & Gas.
The issue price reflects a 1.9% discount to Victoria's closing share price on Wednesday at 13.25p.
The placing was conducted as an accelerated book build via the company's joint brokers, Shore Capital Stockbrokers Ltd and FirstEnergy Capital LLP.
As well as on its assets in Cameroon, Victoria will also apply the proceeds in repaying certain debt and creditor obligations, as well for working capital purposes.
On Wednesday, Victoria Oil & Gas said 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.
"We are very pleased with the results of the fundraising and would like to thank our investors for their participation. The capital raised will allow Victoria to significantly strengthen its financial position whilst allowing management to focus on the development and expansion of its operations and customer base in Cameroon," said Chief Executive Ahmet Dik.