Advance Energy PLC - Isle of Man, UK-based oil and gas company - Raises GBP345,000 in placing of 405.9 million shares at 0.085 pence each. Raises a further GBP80,000 from Non-Executive Chair Rollins and Interim Chief Executive Bottomley in a subscription for 94.1 million shares at same issue price. The price represents a 23% discount to the closing middle market price of 0.085p on July 25.
Plans to use the proceeds for working capital purposes. Further, it plans to pursue an acquisition that would be considered a reverse takeover under the AIM Rules for Companies. Stresses that there is no guarantee that any acquisition will be concluded.
Tennyson Securities Ltd and Optiva Securities Ltd acted as joint brokers for the fundraise.
The company became an AIM Rule 15 cash shell. As a cash shell, it has to make an acquisition that constitutes a reverse takeover, or become an investing company within six months from then to prevent its share from being cancelled and suspended.
Current stock price: 0.094p, down 11% on Friday
12-month change: down sharply from 2.40p
By Abby Amoakuh; abbyamoakuh@alliancenews.com
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