5th Nov 2014 11:59
LONDON (Alliance News) - Independent Oil and Gas PLC Wednesday said it has raised enough working capital through a placing to fund the company for at least the next six months, as it also announced its chairman has retired.
Following a brief statement on October 29, when Independent Oil confirmed it planned to raise additional capital, the company has now raised GBP450,000 through the issue of just over 4 million shares at 11.00 pence a share. The price paid represents a discount of 0.25 pence per share to the closing mid-price of Independent Oil shares on Tuesday, it said in a statement.
Independent Oil shares were down 1.3% to 11.10 pence per share Wednesday morning.
Five of its directors are subscribing for GBP100,000 of the new shares in total, and the placing has taken their holding in the company to 41.4%, from 42.6%, between them.
Chief Financial Officer Peter Young, Non-Executive Directors Mike Jordan, Paul Murray and Marie-Louise Clayton all purchased 181,818 shares each whilst Chief Executive, and now interim Chairman Mark Routh purchased 181,821 shares.
Young has the largest holding of the five directors after the placing, with a 19.8% stake. Jordan now has an interest in 10% whilst Routh has a 6.2% stake. Clayton has a 3.6% holding and Murray holds 1.4% of the issued capital in the company.
"All members of the management team are significant shareholders in Independent Oil and Gas and are aligned with all shareholders to deliver value," said Routh.
Chairman Mehdi Varzi, meanwhile, has informed the company he is to retire with immediate effect in order to devote time to other interests. Current Chief executive Mark Routh will become interim executive chairman whilst the company considers its options.
Independent Oil plans to acquire producing assets to reduce the company's long-term funding requirements, funding the acquisitions substantially or entirely by debt, it said in regards to its ongoing financial predicament.
"We are pleased to have closed this fund raise despite the difficult market conditions. We will continue to look at all options to funding and developing our discoveries with the aim of getting them into production as soon as we possibly can," said Routh.
By Joshua Warner; [email protected]; @JoshAlliance
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