2nd Mar 2016 08:42
LONDON (Alliance News) - Madagascar Oil Ltd on Wednesday said it has entered into a framework agreement with its lenders to secure new financing which would involve it delisting from AIM.
Madagascar said its lenders, comprising Outrider Master Fund LP, BMK Resources Ltd and the John Paul Dejoria Family Trust, have agreed to provide financing to the company through a two-tranche equity placing.
The first would involve raising USD2.0 million through a placing at 1.0 pence per share, with the second tranche seeking to raise USD2.0 million to USD4.0 million at 0.75p per share. Shares in the company were down 36% to 0.6111p.
In order to secure the financing, Madagascar said it will propose a de-listing from AIM, which will be put to shareholders at an upcoming meeting.
By Sam Unsted; [email protected]; @SamUAtAlliance
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