17th Mar 2016 09:29
LONDON (Alliance News) - Sirius Petroleum PLC Thursday said it has issued a substantial amount of new shares in the company to new and existing shareholders at a discounted price, and said it may have to return to the market again in order to raise funds in the near future.
The company said it has issued 166.7 million new shares at a price of 0.3 pence each to raise a total of GBP500,000, which will drop to GBP464,150 after expenses are taken into account.
Those shares represent 9.68% of the company's enlarged issued share capital and the issue price is a 20% discount to the company's closing share price on Wednesday.
Sirius shares were down 18% to 0.308 pence per share on Thursday morning.
The net proceeds of the subscriptions will be used for general working capital purposes and to enable the board to continue to pursue a number of opportunities in relation to project funding for development of the Ororo field, offshore Nigeria, it said.
"The directors continue to carefully manage the working capital position of the company and additional capital may be required depending on the timing of raising project funding. The directors will update shareholders in due course on such funding and whilst they remain positive of a successful outcome, no guarantees can be given," Sirius Petroleum said.
By Joshua Warner; [email protected]; @JoshAlliance
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