(Alliance News) - Ascent Resources PLC on Tuesday said it agreed to a strategic collaboration agreement with investment firm MBD Partners SA.
The European and Hispanic American project-focused oil and gas exploration and production company said the deal was agreed alongside a material strategic equity investment "at a significant premium". Under the agreement, MBD receives the right to propose the appointment of a new nominated non-executive director.
MBD Partners has agreed to subscribe to GBP1.5 million in new equity through a direct subscription of 3.5 pence per Ascent Resources share. This is a 35% premium to its closing price of 2.6p on Monday.
Ascent Resources shares rose 15% to 3.05p each on Tuesday morning in London.
"The company continues to pursue a growth strategy away from Slovenia and evaluate a number of opportunities consistent with the company's strategy to grow in onshore oil and gas, oil services, mining and ESG Metals," Ascent Resources said.
Ascent Resources Chair James Parsons said: "This is a highly advantaged subscription despite difficult markets, which serves both to fund the business at a premium whilst also de-risking our near term inflection point with the expected Slovenian arbitration result. We are delighted to welcome MBD as a cornerstone shareholder and look forward to refining and delivering our strategy together."
By Tom Budszus, Alliance News reporter
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Ascent Resources (AST)