24th Feb 2016 08:51
LONDON (Alliance News) - Independent Resources PLC shares rose on Wednesday after the company issued shares at a significant premium to its current share price to pay for outstanding fees owed by the company.
The oil and gas company operating in Egypt and Tunisia said it has issued 6.0 million new shares at a price of 0.6 pence each to pay outstanding fees for services provided to the company.
That price is 5.7 times higher than the company's closing share price on Tuesday and still significantly higher than its current share price, with shares trading up 75% on Wednesday morning at 0.184 pence.
Independent Resources said the 0.6 pence issue price is the same price used in its most recent equity fundraising back in November last year, when it raised GBP800,000.
Although the 0.6 pence price is at a significant premium to the company's current share price, it represents a 17% discount to the company's closing share price the day before the placing was conducted last year.
Independent Resources has seen its share price fall by around 76% since that placing late last year.
The 6.0 million shares issued to settle outstanding fees on Wednesday represent around 1.8% of the company's enlarged issued share capital.
By Joshua Warner; [email protected]; @JoshAlliance
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