28th Apr 2016 08:17
LONDON (Alliance News) - Rame Energy PLC on Thursday said it initiated a move to raise up to GBP2.8 million by selling new shares in a private placement, with the money to be used to develop its portfolio of wind and solar projects in Chile and for corporate purposes.
The company expects to raise the money at a price of 9.0 pence per share, together with a warrant to subscribe for one additional share at 18.0p within a five-year period. The private placement, which will not be underwritten, requires shareholder approval.
Rame said it made arrangements with a US-registered broker dealer to handle the placing. The broker dealer was not named in the company's statement. The company said it intends for existing shareholders to be offered the chance to invest through an open offer on the same terms as those available under the placement.
In addition to the USD4.0 million development loan announced on Monday this week, the company said it had cash and equivalents of about GBP790,000 on March 1.
Shares in Rame were up 1.7% at 8.64p on Thursday morning.
By Samuel Agini; [email protected]; @samuelagini
Copyright 2016 Alliance News Limited. All Rights Reserved.