At the start of March, Nu-Oil proposed a
On Thursday, however, Nu-Oil reported it had raised
"The ultimate objective for the board throughout this process was to protect shareholder value and consequently the Board decided that a placing should be concluded with as little discount to the original placing price as could be obtained," Nu-Oil Executive Chairman Alan Minty said. "We have achieved this in extremely challenging circumstances and we are now able to refocus our efforts on operational activities."
"The company sought to alleviate the dilutive effect of the placing by reducing the proceeds sought; this reduction will have no impact upon the implementation of the company's plans," Minty added. "Further, we are pleased to announce the appointment of Novum who have acted quickly and effectively in completing our financing."
The placing was conducted by Novum Securities Ltd who Nu-Oil also appointed as its joint broker to replace Beaufort. Novum will work alongside Strand Hanson.
The oil and gas firm said placing proceeds will be used for the acquisition process for marginal field projects. This includes for economic assessment, subsurface due diligence, engineering and design studies, legal costs and creating operating structures in which projects can reside.
After admission - expected March 29 - Nu-Oil will have 1.36 billion shares outstanding including 12.3 million in treasury.
"Nu-Oil is at an exciting phase as we seek to conclude negotiations related to a number of projects and the funds raised will enable the Company to perform vital work required to achieve that objective," Minty said.
