(Alliance News) - Petroneft Resources PLC on Thursday said it intends to issue shares worth USD2.1 million to fund its 2020 capital investment programme and settle outstanding payments to senior management and board directors.
The Russia-focused oil & gas exploration company intends to issue 107.8 million shares at a price of 1.5p each on January 9. Of that, 107.8 million will be placed with investors to raise USD1.6 million in cash for the company, and another 27.0 million placed to pay outstanding salary and fees to managers and directors.
The placing price represents a premium of 58% to the closing price on Wednesday.
Shares in the company were 32% higher at 1.25 pence per share on Thursday in London.
Following admission of the placing shares, the company's will have 828.9 million shares outstanding.
Separately, Petroneft said its USD2.5 million loan facility from Petrogrand scheduled to expire on Sunday has been extended for one year, with a potential further year extension to December 15, 2021.
By Ife Taiwo; ifetaiwo@alliancenews.com
Copyright 2019 Alliance News Limited. All Rights Reserved.