LONDON (Alliance News) - Oil and gas engineering services company Plexus Holdings PLC on Tuesday said it has raised USD5.0 million through a subscription deal with Russian oil and gas equipment maker LLC Gusar.
Plexus will issue 6.8 million shares at 52.05 pence per share as part of the licence agreement it entered with Gusar and CJSC Konar in January 2016. Plexus shares were up 8.4% to 64.51p on Tuesday.
At the same time as the subscription deal, Plexus said it has entered a commercial agreement with Gusar and Konar designed to accelerate Plexus's entry to the Russian oil and gas production wellhead equipment market.
Plexus will use the proceeds from the subscription to boost research and development activity and sales and marketing to grow its Russian business.
"We are pleased to have secured additional funding for Plexus at a time when trading conditions are clearly challenging, and welcome Gusar as a new shareholder," said Ben van Bilderbeek, Plexus's chief executive.
"We are also delighted to further strengthen our licensing and commercial relationship with Gusar and Konar as we advance our strategy to expand Plexus' geographic reach beyond the North Sea, and look forward to developing with our Russian partners a range of superior and locally manufactured wellhead equipment for a variety of field applications," he added.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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Plexus (POS)