11th Aug 2020 13:19
(Alliance News) - i3 Energy PLC shares returned to trading on Tuesday and the UK-focused oil & gas firm said it plans to raise GBP29 million through a share issue.
The stock was down 7.8% at 5.63 pence each on Tuesday afternoon in London.
i3 shares were suspended back in July after it announced the potential reverse takeover of Gain Energy Ltd assets. Its shares have been restored to trading now that it has published a readmission document.
Back in July, i3 said it will part with USD58.8 million to purchase Gain Energy's petroleum and infrastructure assets in the Western Canadian Sedimentary Basin.
Since then, i3 noted it has agreed that once the deal gets over the line, it will sell Gain's petroleum and infrastructure assets in Saskatchewan to Harvard Resources for about USD33 million.
On its fundraising, i3 secured GBP29 million to help fund the Gain deal through a placing and subscription of 568.5 million shares at 5p each.
i3 noted that it has also received a further subscription commitment worth GBP1 million, though this is subject to regulatory consent.
"We look forward to the completion of this placing and subscription, which will allow us to acquire our first production assets and transform the company's future potential as we look to build a large production base in the Western Canadian Sedimentary Basin. We are very grateful to our existing and new investors who have shown confidence in our business plan and growth strategy," Chief Executive Officer Majid Shafiq said.
Also, by the end of the first quarter of 2021, i3 expects to be able to pay a dividend which totals between 20% and 30% of its free cash flow annually, progressively increasing the figure to 40% when its Canadian assets grow.
By Eric Cunha; [email protected]
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