(Alliance News) - Coro Energy PLC on Tuesday said it has raised GBP4.5 million in a share placing in order to provide enough money to see it through to the second quarter of 2022.
The South East Asian energy company said the placing, which was announced on Monday, was for 1.13 billion shares at a price of 0.40 pence each.
Shares in Coro Energy were down 17% at 0.43p in London on Tuesday, giving a market capitalisation of GBP3.2 million.
Coro Energy said proceeds will be used to "provide sufficient financial resources to fund the enlarged group and its asset base through to second quarter of 2022, whilst also seeking to restructure the company's existing debt and conclude a divestment of the company's non-core Italian assets during 2021."
Lombard Odier Asset Management Europe Ltd, a related party as a result of its existing 23% shareholding in Coro Energy, has subscribed for 112.5 million shares at the placing price.
Gneiss Energy and Tennyson Securities acted as lead bookrunners for the placing.
Coro Energy said Monday it had entered into a conditional agreement to acquire Global Energy Partnership Ltd, an originator and developer of renewable energy projects in South East Asia. The purchase of GEPL is the next step in its hopes of building a regionally-focused, low-carbon transitional energy company. The acquisition consideration will be settled through the issue of 142.5 million new Coro Energy shares.
GEPL Co-Founder Mark Hood will join the Coro board as chief executive officer on completion of the acquisition.
"The combination of the acquisition and the proposed placing will provide the company with an enviable renewable energy project pipeline and capital to deploy across both renewables and our underpinning Indonesian gas asset," said Chair James Parsons.
By Zoe Wickens; zoewickens@alliancenews.com
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Coro Energy (CORO)