12th Nov 2015 11:24
LONDON (Alliance News) - Ascent Resources PLC said Thursday it has raised GBP703,500 through the placing of 70.35 million shares at a price of 1.0 pence per share, following a proposed capital reorganisation, and the drawdown of an additional GBP296,500 under an existing facility.
Shares in Ascent were down 31% at 0.0619 pence Thursday morning.
The company said that it believes the total GBP1.0 million raised through the placing and drawdown will allow it to meet its short-term obligations, and help it towards its goal of achieving first gas within a year.
Ascent has proposed a capital reorganisation to reduce the nominal value of its ordinary shares from 0.1 pence to 0.01 pence, and subsequently consolidate the shares by a factor of 20, to increase the nominal value to 0.2 pence per share.
The company is an "advanced stage" talks with new industry partners which would allow it to produce and sell gas from the Peti?ovci gas field in Slovenia without having to construct a new gas treatment facility, which "should significantly shorten the time to first gas and materially reduce upfront capital costs."
It expects to be in a position to enter into a binding agreement with an industry partner by the end of the first quarter of 2016, and subsequently for first gas revenue by the end of the third quarter of 2016. However, Ascent reiterated that it continues to view construction of the gas treatment facility as the long-term solution for the project.
Additionally, the company has agreed to extend the maturity fate of its loan notes by a year to November 19 2016, and to rebase the conversion price of these loan notes to the same price as the placing.
The placing and share consolidation are subject to shareholder approval at the company's upcoming general meeting at the end of November.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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