12th Nov 2014 10:20
LONDON (Alliance News) - Madagascar Oil Ltd Wednesday said it only raised GBP100,000 from a potential GBP3.8 million under its open offer to shareholders announced in October, an offer designed to allow investors to maintain their holdings after the company had raised GBP20 million by placing shares with its biggest shareholders.
The open offer was to raise a maximum of GBP3.8 million at a price of 10.25 pence per share. The offer is now closed and Madagascar said it received acceptances from shareholders for over 1.4 million shares, representing 3.8% of the open offer shares available, raising gross proceeds of around GBP100,000.
Madagascar has the option to place any of the shares not taken up under the open offer, amounting to over 35.7 million shares, at 10.25 pence per share for a period of 90 days, it said in a statement.
"The open offer was provided by the company as an opportunity for shareholders to minimise dilution of their equity holding following the recent placing with the participating major shareholders," said Senior Independent Director Iain Patrick.
In September, the company said it was to raise USD20 million through issuing 119.2 million shares to three of its biggest shareholders, in addition to the open offer. The company has raised total gross proceeds from the placing and open offer of approximately GBP12.4 million via issuing over 120.6 million shares to date, it said in a statement.
The placing "has been undertaken in challenging market conditions, with the issue price trading at a premium to the share price for almost the entire offer period. With the total funds raised from the placing and open offer, Madagascar Oil is well placed to continue preparations for commencement of the first phase of development of the Tsimiroro Block," added Patrick.
Madagascar shares were up 2.4% to 10.50 pence per share on Wednesday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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