Providence Resources Reports Weak Uptake Under Open Offer (ALLISS)

LONDON (Alliance News) - Providence Resources PLC Thursday said only 31% of the shares made available under an open offer that was launched last month have been taken up by shareholders, raising USD1.7 million.

Providence Resources shareholders approved the substantial placing that was launched last month at an general meeting on Thursday, and, when combined with the proceeds from the open offer, Providence has raised a total of USD70.0 million.

The placing comprised of 399.7 million shares priced at 12.0 pence each to institutional and other investors.

Shares were suspended in April and resumed trading on June 22, the day after the placing was announced. Prior to being suspended, shares were trading at 13.75p - 13% lower than the issue price. Providence Resources shares were trading flat on Thursday at 12.0p.

A total of 31.8 million shares were made available under the open offer, but only 31%, or 9.8 million of the shares were taken up by shareholders, raising USD1.7 million.

In addition to the open offer and placing, a further 9.9 million shares have been issued to Melody and 38.0 million shares were issued to Cenkos Securities PLC. The reason for those shares being issued was not provided.

Following admission of all those shares, Providence Resources' share capital will stand at 597.7 million, meaning the shares issued on Thursday represent around 68% of the enlarged issued share capital.

By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance

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