20th Jul 2015 08:15
LONDON (Alliance News) - Oilex Ltd Monday said it has been notified it will not be granted a waiver concerning the deferred shares set to be issued to Zeta Resources Ltd as part of its recently announced AUD30 million capital raising.
On July 7, the Indian-based oil company outlined its plans to raise a total of AUD30 million by conducting two placings and a rights issue.
The company has already carried out one small placing that did not require shareholder approval to raise the first AUD1.8 million.
The second, much larger placing, which requires shareholder approval, will result in the company issuing a further 287.3 million new shares at AUD0.041 per share and an additional 225.5 million new shares at AUD0.0418.
Those 225.5 million new shares will be issued to Zeta Resources, and the company said Zeta was paying the higher price in consideration of a deferred settlement date for those shares of up to five months from the general meeting where shareholders will vote on the second tranche.
However, on Monday Oilex said it needed to get a waiver from the Australian Securities Exchange as rules state all shares must be issued no later than three months after the date of the general meeting.
Oilex said it has been notified this waiver will not be granted. Therefore, the company will now proceed to issue and allot the Zeta deferred shares within three months after the date of the general meeting.
On completion of the capital raising, if approved, Zeta will hold approximately 19.6% of the expanded shares in issue.
The company is also separately undertaking a renounceable rights issue to all eligible shareholders as part of the capital raising, to enable eligible shareholders to have the opportunity to participate in the capital raising process at the same price as the first tranche at AUD0.041 per share.
That rights issue is fully underwritten and expected to raise a further total of AUD7.0 million via the issue of 169.5 million new shares on the basis of 1 new share at AUD0.041 for every 4 shares currently held by shareholders, it said.
Oilex shares were up 1.2% to 2.02 pence per share on Monday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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