LONDON (Alliance News) - Oilex Ltd Tuesday said it has conducted a placing to raise AUD1.8 million and will seek shareholder approval to conduct a further, larger placing to raise another AUD21.2 million and a rights issue for a further AUD7.0 million.
Oilex is aiming to raise a total of AUD30 million under its proposals.
The company, under its ASX listing, has issued 45.4 million new shares at AUD0.041 per share to raise the AUD1.8 million, roughly USD1.4 million. Oilex did not need shareholder approval to conduct the placing.
However, Oilex will seek approval from shareholders to issue a second tranche of shares, consisting of a further 287.3 million new shares at AUD0.041 per share and another 225.5 million new shares at AUD0.0418 per share to raise a combined AUD21.2 million, roughly USD16.3 million.
Under that second tranche, the 225.5 million new shares at AUD0.0418 will be issued to Zeta Resources Ltd. Zeta is paying the higher price in consideration of a deferred settlement date for those shares of up to five months from the general meeting where shareholders will vote on the second tranche, it said.
On completion of the capital raising, if approved, Zeta will hold approximately 19.6% of the expanded shares in issue. Zeta is an active, resources focused holding and development company listed on the ASX, and is 85% owned by Utilico Investments Ltd.
"This deferred settlement is not expected to impact the timing of the Cambay and Bhandut Field 2015/16 work programmes," said Oilex.
The company is also separately undertaking a renounceable rights issue to all eligible shareholders to enable eligible shareholders to have the opportunity to participate in the capital raising process at the same price as the first tranche at AUD0.041 per share.
That rights issue is fully underwritten and expected to raise a further total of AID7.0 million or USD5.3 million via the issue of 169.5 million new shares on the basis of 1 new share at AUD0.041 for every 4 shares currently held by shareholders, it said.
The meeting for shareholders to vote on the company's plans will take place on August 12.
Oilex shares were down 4.4% to 2.15 pence per share on Tuesday afternoon.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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Util (UTL)