3rd Oct 2018 09:14
LONDON (Alliance News) - Shares in 88 Energy Ltd fell Wednesday as the firm announced a rights offer to raise approximately GBP8.0 million.
The stock was trading at 1.06 pence a share, down 5.4%.
The firm is offering one new share for every seven held, with new shares offered at 1p each.
The funds, 88 said, will be used for testing Winx-1 exploration well, any costs overruns, ongoing geological and geophysical work, and for general purposes.
Managing Director David Wall said: "The company has successfully completed several placements over the last four years, which have served to grow the asset base and diversify our portfolio, which is now stronger than it has ever been.
"There are now four significant projects at mature stages that we believe can add substantial near to medium term value for our shareholders via drilling and/or farm-out transactions."
Wall added: "We have received feedback from a number of existing shareholders asking to be considered in future placements. The board has listened and, consequently, we are pleased to provide the opportunity for all shareholders to participate in funding the upcoming potentially transformation period for the company."
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88 Energy