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Victoria Oil & Gas announces subscription and placing to raise up to GBP12.6 million
06 Mar 2019
Victoria Oil & Gas, the integrated natural gas producing utility company in Cameroon, has announced a £12.6 million (c.US$16.5 million) equity fundraise.
- Binding conditional direct share subscription by YF Finance Limited to raise £6.5 million
- Proposed Placing to raise up to £6.1 million
- Fundraising to be conducted at an issue price of 13 pence per share
- The Placing is being conducted by way of an accelerated book build process which will open with immediate effect following this announcement
- On completion of the Fundraising, Kevin Foo will retire as Director and Executive Chairman
- Roger Kennedy, currently Senior Non-Executive Director, will assume the role of Executive Chairman
- Two additional independent non-executive directors will be appointed to the Board
The Company has entered into a conditional agreement for a subscription of 50,000,000 new Ordinary Shares, at an issue price of 13 pence per share, by YF Finance to raise £6.5 million, before expenses. YF Finance is the Company's largest shareholder and is currently interested in 11,085,239 ordinary shares, representing approx. 7.37 per cent. of the Company's existing issued share capital. YF Finance is wholly owned by Mr Askar Alshinbayev and has investments in several other international oil & gas companies.
In addition, the Company is seeking to raise an additional £6.1 million, before expenses, by way of a proposed placing to certain new and existing institutional and sophisticated investors via its joint brokers, Shore Capital Stockbrokers and FirstEnergy Capital, at the Issue Price. The maximum targeted amount for the fundraising, comprising the Subscription and the Placing, is approx. £12.6 million (approx. US$16.5 million). The Subscription is not conditional on any minimum amount being raised in the Placing.
The Placing is being conducted as an accelerated book build process which will open with immediate effect following this announcement.
The Fundraising is subject to the requisite shareholder approval and, accordingly, the issue of the New Ordinary Shares is conditional on, inter alia, the passing of certain resolutions by Shareholders at a duly convened general meeting of the Company, notice of which, together with full details of the Fundraising, will be set out in the circular to be posted to Shareholders shortly.
Ahmet Dik, CEO of VOG, commented:
'This morning's announcement to raise up to £12.6 million in conjunction with the proposed Board changes is a new beginning for VOG. The Fundraising will strengthen the Company's financial position and provide the necessary support for the new Board and Senior Management to take the Company to the next level. Given the gas demand in the industrial city of Douala Cameroon, and the Company's strategic position of being the only onshore gas supplier and operator of the gas pipeline network, the Company can now look to develop its Matanda project and optimise its Logbaba operations with a view to becoming cashflow positive in the near term.
'Finally, a reduction of director salaries, which I welcome, is evidence of the new Board's focus to drive the Company to ensure Shareholder returns.'
Click here for full announcement
Source: Victoria Oil & Gas