29th Apr 2015 08:39
LONDON (Alliance News) - New World Oil and Gas PLC shares dropped on Wednesday after it said it conducted a discounted share placing to raise GBP1.5 million to progress its projects in Belize and Denmark and other opportunities.
The oil and gas company said it issued 2.72 billion new shares in the company at 0.055 pence per share with existing and new investors to raise the GBP1.5 million, which will be used to develop its assets and pursue new opportunities. Following the placing, New World will have 3.43 billion shares in issue, almost five times its existing total.
New World shares fell 27% to 0.0689 pence per share on Wednesday morning.
The proceeds will be used to continue efforts to source partners for its 100% owned Blue Creek project in Belize and its 25% owned Danica Jutland and Danica Resource projects in Denmark in order to continue development, it said.
New World will also "pursue additional interests, in particular opportunities in the oilfield enhancement space", the company added.
"We are delighted with the support we have received from both existing and new investors for our decision to pursue opportunities we have been assessing in the oilfield enhancement space where we believe there is significant potential," said Non-Executive Chairman Chris Einchcomb.
In addition, the company said it is expecting to receive a competent person's report update for its Danish license in the second quarter of 2015.
Directors at New World will also continue to forego salaries from February 2015 "until such a time the company's remuneration committee deems it to be reasonable in light of New World's financial position".
"In line with delivering the utmost value for our shareholders, myself and the New World Board are not taking salaries so that we can spend every penny on our efforts to bring the company into cash-flow and reward our loyal investors," said Einchcomb.
Following the placing, New World has a total of GBP2 million in cash.
By Joshua Warner; [email protected]; @JoshAlliance
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