Challenger Energy Group PLC - Isle of Man-based oil explorer with assets in the Caribbean and Atlantic Margin - Raises GBP5.0 million from placing and subscription of 5.02 billion new shares at 0.10 pence each. The placing raises more than the GBP4.0 million initially planned. The executive leadership team, including Chief Executive Offer Eytan Uliel, participate, investing GBP275,000. Challenger plans to raise a further GBP2.0 million from an open offer at the same price. The offer to existing shareholders will be made on the basis of 2.51 new shares for each existing share held.
The fundraise will be used to complete a financial restructuring that will reduce debt to USD2.5 million from USD23 million and to fund a work programme in Trinidad and Tobago and Suriname in 2022 and into 2023. As part of the recapitalisation, Challenger has revamped its board. Iain McKendrick will replace William Schrader as non-executive chair. Schrader, Non-Executive Deputy Chair James Smith and Non-Executive Director Simon Potter all will leave the board. Tim Eastmond is appointed chief financial officer.
Current stock price: 0.15p, down 75% on Thursday
12-month change: down 99%
By Tom Waite; thomaslwaite@alliancenews.com
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Challenger Energy (CEG)