Gordon Stein, CFO of CleanTech Lithium, explains why CTL acquired the 23 Laguna Verde licenses. Watch the video here.

Less Ads, More Data, More Tools Register for FREE

Molecular Energies axes share price with discount placing announcement

Wed, 24th Jan 2024 12:33

(Alliance News) - Molecular Energies PLC shares halved following the announcement of a fundraise intended to support ongoing activities at its Paraguayan exploration project.

Molecular Energies, formerly known as President Energy PLC, is an Argentina and US-focused oil and gas production company. Shares in the company were down 52% at 35.30 pence each in London on Wednesday afternoon.

This followed an announcement outlining Molecular's intention to raise "at least" GBP500,000 through the placing of 991,851 new shares and a subscription of 436,714 shares at a price of 35p. This price represents a discount of roughly 52% to Molecular's closing mid-market price of 73.5 pence on Thursday.

The placing, for which Cavendish Capital Markets Ltd is acting as bookrunner, is conditional upon admission of the news shares to trading on AIM, expected to occur no later than January 26.

Proceeds from the fundraise will be used to provide Molecular working capital to advance its alternative energy division, Green House Capital Group PLC. The company intends to float GHC, in which it holds a 75% stake, in 2024.

Molecular also said it requires financing for its Tapir x-1 exploration well at the Pirity concession in Chaco, Paraguay. In January, Molecular confirmed the spudding of the well, believed to hold over 260 million barrels of Pmean unrisked oil resources. The company said it believes it "has the experience and contacts to monetise the opportunity quickly".

The company added: "[Molecular] has a proven track record of innovation and value creation through the implementation of new business lines. The net proceeds of the fundraising will allow the company to advance the many opportunities it is now seeing and to invest in the technical and other studies required to bring these to fruition."

By Hugh Cameron, Alliance News reporter

Comments and questions to newsroom@alliancenews.com

Copyright 2024 Alliance News Ltd. All Rights Reserved.

Related Shares

More News
15 Apr 2024 17:10

LONDON MARKET CLOSE: Investors show nerves after Iran launches drones

(Alliance News) - Stock prices in London closed down on Monday, as tensions in the Middle East weighed on investors, with resources sliding as commodi...

15 Apr 2024 13:52

Molecular Energies shares plummet as company to delist from UK markets

(Alliance News) - Molecular Energies PLC announced following a general meeting on Monday that the company's shares will no longer be traded on the UK ...

8 Apr 2024 14:26

UK shareholder meetings calendar - next 7 days

3 Apr 2024 10:59

TRADING UPDATES: Quiz sales fall, names new CEO; Byotrol eyes AIM exit

(Alliance News) - The following is a round-up of updates by London-listed companies, issued on Thursday and not separately reported by Alliance News:

28 Mar 2024 11:00

AIM WINNERS & LOSERS: SIMEC gets payment; Molecular Energies to delist

(Alliance News) - The following stocks are the leading risers and fallers on AIM in London on Thursday.

Login to your account

Don't have an account? Click here to register.

Quickpicks are a member only feature

Login to your account

Don't have an account? Click here to register.