LONDON (Alliance News) - Oilex Ltd on Tuesday announced a share placing which together with a loan agreement with Republic Investment Management Pte Ltd will cover its financial requirements into the new year.
The oil & gas exploration company said it raised GBP630,000 in total.
The share placing was made at 0.19 pence each. The stock was trading 11% lower on Tuesday in London at 0.22p per share. Oilex shares had been suspended from trading on the ASX in Sydney in anticipation of the announcement.
The fundraising was supported by the company's existing shareholders with Novum Securities Ltd placing 157.9 million shares, worth GBP300,000, with investors. Oilex also will issue 9.5 million options as part of Tuesday's share placing. The options are exercisable at 0.19p on or before three years following the completion of placing.
Oilex also said Republic Investment bought 101.9 million shares at the same price, raising GBP193,652.
In addition, the company said it entered into a binding loan agreement with Republic Investment to secure funding of AUD250,000, about GBP138,325.
As part of this funding, 60.7 million options will be issued to Republic Investment with an exercise price at a 20% premium to the share issue price. If exercised, Oilex will receive a further cash inflow of AUD250,000.