26th May 2016 08:51
LONDON (Alliance News) - Regency Mines PLC Thursday said it has invested GBP175,000 in Westport Energy PLC in a pre-IPO funding round, and has committed to invest further when the company lists in London.
Westport Energy has been recently formed with the aim of buying up natural gas operations in the US.
Regency will initially subscribe for 21,875 shares at a price of GBP8.00 per share in Westport. The Westport stock will subsequently undergo a 100-for-1 stock split.
Regency has agreed to invest a further GBP350,000 in Westport at a price of GBP0.10 a share upon its admission. At that time Regency will also appoint a director to Westport's board.
It also will receive additional shares in Westport at the IPO in payment of a 7% fee, to be taking in shares in Westport, in consideration of its entering into a one-year lock in on IPO Subscription and Fee shares.
"With US gas rig utilization counts at record lows and current estimates showing US gas supplies going into deficit by the end of 2016, now is the time to take a meaningful position in the US gas market. Westport is well positioned to take advantage of these market conditions and the gradual switch to gas as the preferred fossil fuel, as it completes a pre-IPO funding round prior to targeting gas assets as they come out of a foreclosure process," said Chairman Andrew Bell in a statement.
Shares in Regency Mines were down 3.2% at 0.387 pence Thursday.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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