LONDON (Alliance News) - Lansdowne Oil and Gas PLC Tuesday said it raised over GBP1 million through a share placing with new and existing investors and issued a loan note to one of its shareholders worth an additional GBP1.9 million.
The total GBP2.9 million proceeds from the fund raising will be used to meet the company's existing liabilities and working capital requirements until the end of 2015 whilst it continues to try and complete the farm-out of its Barryroe asset offshore Ireland.
Lansdowne issued just under 20.8 million shares at 5.0 pence a share to raise GBP1 million before costs, and issued a loan note worth under GBP1.9 million to a significant shareholder, LC Capital Master Fund Ltd.
Three directors of the company took part in the placing. Non-Executive Director Tim Torrington bought 2 million shares, increasing his stake to 2.1 million shares, or a 1.31% stake, whilst Non-Executive Director John Aldersey-Williams bought 200,000 shares to increase his stake to 240,000 shares, or a 0.15% stake. Chief Executive Stephen Boldy bought 200,000 shares, upping his stake to 252,660 shares, or a 0.16% stake.
LC Capital also took part in the placing, buying over 8.9 million shares to increase its total shareholding to over 45.1 million shares, representing 28% of the issued share capital in the company.
Non-Executive Director Steven Lampe is a beneficiary of LC Capital and holds an additional 196,078 shares in the company of his own.
The loan note issued to LC Capital is due on March 9, 2016 and a carries a coupon of 10% per year, with no conversion rights, said Lansdowne.
Shareholder SeaEnergy PLC confirmed in a separate announcement that it did not participate in the placing, and as a result its 21.48% shareholding of 30,194,193 shares will be diluted to 18.72% once the placing shares are issued on Thursday.
Lansdowne Oil shares were up 2.9% to 4.50 pence per share on Tuesday afternoon, and shares in SeaEnergy were down 3.0% at 27.65 pence.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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Lansdowne Oil (LOGP)