(Alliance News) - Jadestone Energy PLC on Tuesday said it plans to raise over USD85 million through a placing, subscription, and open offer.
Jadestone is a London-based oil and gas production company, focused on the Asia-Pacific region.
The company said the fundraise consists of a USD50 million equity fundraise, as well as a USD35 million standby working capital facility.
It said that both will be provided by the company's largest shareholder, Tyrus Capital SAM. Tyrus holds a 26.45% stake in Jadestone.
Jadestone explained that the fundraise will provide the company with balance sheet resilience and financial flexibility.
Chief Executive Officer Paul Blakeley said: "I understand that the need for additional funding at this point in time will come as a surprise to many of our shareholders, however it was a decision not taken lightly. We understand how frustrating this must be and we are committed to improving Jadestone's governance and communications in the future."
Shares in Jadestone closed at 49.00 pence each in London on Tuesday.
By Sophie Rose, Alliance News reporter
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Jadestone Energy (JSE)