Last checked at 17 Apr 2015 07:00
Roxi Petroleum PLC
("Roxi" or the "Company")
$20 million subscription
Roxi, the Central Asian oil and gas company with a focus on Kazakhstan, is pleased to announce it has entered into a subscription agreement to raise $20m at above the current market price.
The Company has entered into a Subscription Agreement with BOCO (H.K.) Limited, ("BOCO"), whereby BOCO will subscribe for 75,585,790 new ordinary shares at a price of 18p per share. This represents a premium of approximately 16% to the closing mid- market price on 16 April 2015. On completion BOCO will hold approximately 7.87% of the enlarged share capital.
BOCO's parent company is Bright Oceans Corporation ("Bright Oceans"), a Chinese industrial group.
It engages in the businesses of integrated oil exploration and production, oilfield technology research, oil products and equipment import and export, and IT services.
BOCO (H.K.) Limited is based in Hong Kong.
Right to appoint a non-executive director
Under the terms of the Subscription Agreement BOCO has the right to appoint a non-executive director to the Board of Roxi. The appointment of such non-executive Director is subject to the approval of Roxi's nominated adviser and the AIM Rules.
Use of proceeds
Roxi intends to use the proceeds of the BOCO subscription to accelerate the development of its flagship BNG asset.
Completion and Shares in issue
The Company will make a further update notifying of the completion of the subscription agreement and the receipt of funds and also the proposed date of admission to trading on AIM of the subscription shares.
The total number of shares in issue following the issue of these shares will be 960,257,219. The new shares to be issued to BOCO (H.K.) Limited would represent 7.87% of the enlarged issued share capital.
Comment:
Clive Carver, Chairman said
"We are naturally delighted to have attracted this significant investment and demonstration of confidence in the future of the Company. We look forward to working with the BOCO as we enter the next stage of Roxi's development
In the current market security of funding is more important than ever. Those with access to funding are able to develop their assets more cheaply than in recent years. Those without access to funding are stuck.
The funds from the BOCO subscription together the with the proceeds from the forthcoming completion of the sale of Galaz will provide an additional $50 million and allow the pace of development at BNG to be accelerated at a time when the cost of drilling is falling."
Enquiries:
Roxi Petroleum PLC Clive Carver, Chairman
+7 727 375 0202
WH Ireland Ltd James Joyce / James Bavister
+44 (0) 207 220 1666