20th Jul 2015 08:09
LONDON (Alliance News) - Independent Oil and Gas PLC Monday said it has still not received the funds from an unnamed investor who purchased shares in the company in June, but said it has been assured it will receive the funds within the "next few days".
On June 22, Independent Oil said it had issued 609,500 new shares in the company to an investor at 23.79 pence per share in order to raise GBP145,000 in short term funding to tide the company over until September whilst it tries to secure longer-term financing to develop its North Sea projects.
However, earlier in July the company said that it had not received the GBP145,000 from the investor. Independent was expecting to receive the payment no later than July 17.
On Monday, the company said it has still not secured the payment, but has "received confirmation from the investor that it has the available funds and that payment should be received within the next few days," it said in a statement.
Independent Oil said it will release an announcement shortly concerning its longer-term financing plans.
The company is trying to secure a long-term financing deal which will be split between equity and debt funding from an unnamed potential funder which Independent Oil called "an internationally listed group with a multi-billion dollar market capitalisation".
The funder is expected to subscribe for 30 million shares in the company at 23.79 pence per share, raising approximately GBP7.1 million for the company. The funder would take a 29.9% equity stake in the company as part of the agreement.
Independent Oil shares were up 2.1% to 18.25 pence per share on Monday morning.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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