21 May 2012 07:00
ViaLogy PLC ("ViaLogy" or "the Company")
Placing of £2.04 million
London, May 21, 2012. ViaLogy PLC (AIM: VIY), a provider of reservoir characterization, geophysical imaging and hydrocarbon sizing services to global oil and gas Exploration and Production (E&P) companies based on proprietary, patented active signal processing technology, is pleased to announce that following a number of new contract wins, it has today conditionally raised a total of £2,045,000 (before expenses) through the placing of 74,363,637 ordinary shares ("the Placing Shares") at a price of 2.75p each ("the Placing") with existing and new institutional investors.
The Placing is completing in two tranches, the first being the issue of 38,000,000 Placing Shares at a price of 2.75p each to raise £1,045,000 (before expenses). Application has been made for the admission to trading on AIM of 38,000,000 new ordinary shares, which is expected to take place on 23 May 2012.
Following institutional demand, the second tranche is a placing of 36,363,637 Placing Shares at a price of 2.75p each to raise £1,000,000 (before expenses), conditional upon shareholder approval at a general meeting of the Company. A general meeting is expected to be held on or around 15 June 2012. A further announcement will be made in due course.
The net proceeds of the Placing will be used to strengthen the balance sheet and provide additional working capital to support ViaLogy's strategy.
CEO, Robert W. Dean, commented "2012 is shaping up to be a pivotal year for ViaLogy as we seek to fulfil our goal of widespread E&P industry adoption of our technology, QuantumRD. Since the start of the year we have successfully signed new contracts with three of the largest global E&P firms where QuantumRD will be used in some of the world's most important development fields; aiming to improve significantly on industry-standard techniques now in use. The net funds raised from this placing will provide additional resources as we seek to secure further contracts."
"In light of the current difficult market conditions for raising money, I was personally delighted that, following a short round of institutional meetings, we were able to increase the level of the placing due to institutional demand."
For the purposes of the Disclosure and Transparency Rules, on admission of the first tranche of the Placing Shares, the Company's total issued share capital consists of 890,243,274 ordinary shares of 1 penny each.
The above figure may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the Company, under the Disclosure and Transparency Rules.
Options Grant
Under the terms of his employment contract entered into on June 22 2010, Dr. Sandeep Gulati, ViaLogy's founder and Chief Technology Officer, is entitled to additional options awards in order to retain his interest in the ordinary share capital of ViaLogy. The Company will therefore issue 7,546,048 options exercisable at 1p per share.
For further information:
ViaLogy PLC | ||
Terry Bond, Chairman - UK & Europe | +44 (0) 1235 834 734 | |
Seymour Pierce (Nominated Advisor and Broker) | +44 (0) 207 107 8000 | |
Mark Percy / Catherine Leftley (Corporate Finance ) | ||
Katie Ratner (Corporate Broking) |
About ViaLogy:
ViaLogy provides reservoir characterization, geophysical imaging and hydrocarbon sizing services to global oil and gas customers based on proprietary, patented active signal processing technology. ViaLogy's QuantumRD platform assists clients in de-risking prospects over a broad range of subsurface lithologies and complex stratigraphies to generate drilling targets, position offsets and enhance recovery.
ViaLogy's core technology rapidly and accurately detects weak signals buried in high noise background and clutter, and is applicable to active/passive seismic, electromagnetic and magneto telluric data. By exploiting normally disregarded noise variations induced by changes in porosity, fluid presence and permeability across the formation, and adding computer-designed noise to the data, ViaLogy is able to amplify subtle noise variations to enhance areal and depth resolution in complex lithologies that are not achievable through conventional means. For more information on ViaLogy, visit www.vialogy.com