7th Jul 2016 16:19
LONDON (Alliance News) - Savannah Petroleum PLC on Thursday said it has raised USD40.0 million in a share placing in which 79.8 million shares were conditionally placed at 38 pence per share.
Savannah requested for its shares to be suspended in January this year after entering talks with another party that, if completed, would have led to a reverse takeover. The stock last traded at 24.00p in January.
However, Savannah said it now plans to terminate those talks, after having completed a USD40.0 million share placing, providing the funds needed to develop its existing assets in the second half of 2016 and allowing the company's shares to resume trading on AIM.
Savannah already held the authority to issue 18.9 million of the new shares, which have been issued and raised GBP7.2 million - or USD9.3 million of the total USD40.0 million target. Those shares represent 9.0% of the enlarged issued share capital following that first placing.
A further 60.3 million new shares then were conditionally placed at the same price, raising GBP22.9 million - or the other USD29.7 million needed.
Those shares will be issued only if shareholders grant approval at a general meeting on July 22, and would represent 22% of the company's enlarged issued share capital following that second placing.
Mirabaud Securities LLP acted as sole bookrunner and joint lead manager, and Panmure Gordon (UK) Limited acted as joint lead manager.
"This fund raise was oversubscribed and has been extremely well supported by both existing and new shareholders who we thank, as well as by the management team. This is a strong endorsement of our strategy and ensures we are funded to move the assets to the next level of value creation. From here we can now look forward to the imminent recommencement of ground operations with the 3D seismic programme at R3, which will in turn help us maximize the chances of a successful drilling campaign in 2017," said Chief Executive Andrew Knott, referring to the company's asset in south east Niger in west Africa.
By Hannah Boland; [email protected]; @Hannaheboland
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