- Over $8 million of committed subscription funds secured.
- Successful completion of the accelerated institutional component of the non-renounceable entitlements offer, with firm commitments to raise $1.84 million.
- Firm placement commitments received for a further $3.52 million (including $0.9 million committed in the conditional placement subject to receipt of shareholder approval).
- Armour Shares will resume trading today on an ‘ex-entitlement’ basis.
- The fully underwritten $2.69 million retail component of the entitlement offer will open 24 June 2020 and close on 15 July 2020 (unless otherwise extended).
- an initial placement;
- an underwritten accelerated non-renounceable, pro rata entitlement offer; and
- an additional conditional placement;
which together are seeking to raise a combined total of up to $10 million at a price of 2.3 cents per share, together with one free attaching option (exercisable at 5 cents to 29 February 2024) for every two shares issued.
The capital raising program is being managed by Bizzell Capital Partners (BCP; associated with Armour Energy Director Stephen Bizzell) in conjunction with JB Advisory Partners as Joint Lead Managers, with the entitlement offer being fully underwritten by Bizzell Capital Partners.
Armour is pleased to report that the institutional component of the Company’s entitlement offer has closed with firm commitments for $1.84 million received. Firm placement commitments for approximately $3.5 million from a range of sophisticated and professional investors have also been received with approx. $2.6 million to be settled upfront, and $900,000 to be settled in a conditional placement subject to receipt of shareholder approval. The allotment of the shares associated with the accelerated component of the entitlement offer and the upfront component of the placement is scheduled for Monday 22 June 2020.
The remaining approx. $2.69 million to be raised under the retail component of the entitlement offer has been fully underwritten by BCP. The Joint Lead Managers of the capital raising program have to date also secured firm commitments for a further $900,000 for the conditional placement, to be conducted subject to obtaining shareholder approval which will be sought at an Armour shareholder meeting in early September 2020.
Accordingly, the total of funds secured to date under the capital raising program is presently in excess of $8 million (including $900,000 subject to shareholder approval) with additional funds targeted to be raised in the conditional placement.
The Company intends that the funds raised under the capital raising program will be used for the purposes of progressing the Kincora Project area well intervention and work program; payment of interest and scheduled amortisation reductions in respect of the Company’s Amortising Notes for the balance of 2020, and to otherwise ensure continued compliance with the financial covenants of the Notes; exploration expenditure; the costs of the raisings; and general working capital.
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Soyrce: Armour Energy