UK Oil & Gas (UKOG) has conditionally raised gross proceeds of £1.0 million by means of a placing of new Ordinary Shares at a price of 0.05 pence per share. The Issue Price represents a discount of approx. 37% per cent to the Closing Price of 0.08 pence per Ordinary Share on 2nd August 2024, being the latest practicable business day prior to the publication of this Announcement.
In addition to the Placing, as the Company values its existing retail shareholder base, the Company also intends to offer its existing retail shareholders a 'Retail Offer' of new Ordinary Shares at the same Issue Price as the Placing.
The Company will release a separate announcement regarding the Retail Offer and its terms. For the avoidance of doubt, the Placing is separate from and does not form part of the Retail Offer.
The Placing and Retail Offer are conditional, inter alia, upon the passing of resolutions to be put to the Company's shareholders at a General Meeting, expected to be held via a virtual platform on or around 21st August 2024 and the Fundraising Shares being admitted to trading on the AIM market of London Stock Exchange.
Use of Proceeds:
The Placing's proceeds will be directly employed to further specific activities required to materially advance the Company's hydrogen storage projects. Specifically, it will permit the Company to initiate essential new studies, including but not limited to environmental surveys, engineering studies and other works necessary to submit applications for: (i) government Revenue Support in the first hydrogen storage allocation round (see RNS 29th May 2024, 27th June 2024 and 2nd August 2024), and (ii) Development Consent Orders under the Nationally Significant Infrastructure Project planning regime.
The funds will also permit the Company to further negotiations with identified prospective strategic joint venture partners and conclude a land option agreement for a further hydrogen storage site. The Company will also seek further Letters of Support for its Revenue Support application similar to those recently furnished by major energy and UK hydrogen infrastructure players RWE, Sumitomo and SGN.
Placing Summary
- The Placing raised £1,000,000 (before expenses) through the issue of 2,000,000,000 Placing Shares at the Issue Price.
- The net proceeds of the Placing will be utilised as described above.
- Participants in the Placing have subscribed on the basis of the customary terms and conditions of the Placing.
The Placing
Subject to the passing of resolutions by the Company's shareholders at the General Meeting, the Company will issue 2,000,000,000 Placing Shares, to raise gross proceeds of £1,000,000 to participants in the Placing. Admission to trading on AIM is expected on or around 27th August 2024. CMC Markets UK Plc ('CMC'), trading as CapX, acted as the Company's sole placing agent in respect of the Placing.
Stephen Sanderson UKOG's Chief Executive commented:
'The funding, together with the support from leading UK energy and hydrogen-space infrastructure players, RWE, Sumitomo and SGN, means we can now materially advance our nationally significant projects towards the goal of a competitive Revenue Support application. It will also greatly help us to secure at least one major strategic partner as a joint venture participant and to enhance our lobbying efforts with our new Labour government, who to date seem motivated and committed to making hydrogen and its storage a fundamental part of Britain's renewable superpower ambition.'
Source: UKOG
