27th Aug 2015 17:30
LONDON (Alliance News) - Gulfsands Petroleum PLC Thursday said it intends to raise USD22 million through the issue of 354.8 million shares in an open offer at a price of 4 pence each, in order to provide the working capital to continue its operations.
Gulfsands said that Waterford Finance & Investment Ltd and Richard Griffiths, shareholders in the company, have irrevocably undertaken to subscribe for their full entitlements under the open offer and will also acquire any remaining shares that are not subscribed for by other shareholders.
Gulfsands said the purpose of the open offer is to raise the sufficient proceeds to repay the full amount advanced under its convertible loan facility and to fund the company's working capital requirements.
The open offer is subject to the approval of shareholders and will be proposed at a general meeting on September 14.
Gulfsands warned that should the open offer not proceed, the company will not have sufficient working capital to continue its operations, and the holders of the convertible loan facility may exercise their security over some of the group's assets if the outstanding balance is not repaid.
"The directors have given consideration as to the best way to structure a proposed capital raising to secure the future of the company, and have concluded that the structure of the fundraising by way of an open offer is the most suitable option available to the company and its shareholders as a whole," Chairman Alastair Beardsall said in a statement.
Shares in Gulfsands closed down 1.1% at 4.70 pence on Thursday.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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