30th Jul 2018 12:37
LONDON (Alliance News) - Path Investments PLC said Monday it plans to raise GBP10 million via a placing of new shares in the company.
The company said that the completion of the placing will provide it with sufficient funding to complete a farm-in agreement with 5P Energy GmbH to acquire a 50% stake in Alfeld-Elze II licence, a producing gas field in Germany.
The deal sees Path Investments paying an initial EUR5 million in cash to 5P Energy. The transaction includes a 100% carry up to a maximum of EUR10 million towards the costs incurred for production at the field.
Additionally, subject to the well achieving production, there is a cash consideration payment of EUR2 million as partial reimbursement of the costs incurred by 5P before January 2018.
The number of shares to be placed and the placing price has not been disclosed. They are at the discretion of Cantor Fitzgerald Europe which is acting as joint financial adviser, broker and bookrunner in relation to the placing.
Shard Capital is also acting as joint financial adviser and broker in the transaction.
Path Investments shares continue to be suspended from trading on the Main Market of the London Stock Exchange. The new shares will be admitted to trading on AIM, while the company's shares on the Main Market will be cancelled at that time.
Related Shares:
PATH.L