(Alliance News) - ADM Energy PLC on Wednesday said it has entered into agreements to raise GBP832,000 before expenses from Zark Capital Ltd, an independent fixed income boutique firm, and other investors.
The AIM-listed oil & gas investing company said it will issue 11.9 million shares at a price of 7 pence and up to 14.9 million of warrants, subject to shareholders' approval. The warrants, if issued, will have an exercise price of 8 pence per share and may be exercisable no earlier than six months and no later than two years after the date of their issue.
ADM shares were trading 11% higher on Wednesday in London at 6.75p each.
The fundraising will comprise of GBP420,000 subscribed by Zark and GBP412,000 from other investors. Following the subscription, Zark will hold 9.7% interest in ADM.
The funds raised will be used for general working capital purposes and to allow the company to appraise further investment opportunities and to provide funds for investment, it said.
"We are pleased to secure funding from new and current shareholders. The funds will provide working capital and help the company to appraise investment opportunities and to provide funds for investment that tie into our strategy to identify attractive investment opportunities in the oil and gas sector, primarily in West Africa," said Chief Executive Osamede Okhomina.