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Update to Proposed Financing Transaction

20th Dec 2012 16:56

RNS Number : 0816U
Madagascar Oil Limited
20 December 2012
 



NEITHER THIS ANNOUNCEMENT NOR ANY PART OF IT CONSTITUTES AN OFFER TO SELL OR ISSUE OR THE SOLICITATION OF AN OFFER TO BUY, SUBSCRIBE OR ACQUIRE ANY NEW COMMON SHARES OR NEW CONVERTIBLE PREFERENCE SHARES IN ANY JURISDICTION IN WHICH ANY SUCH OFFER OR SOLICITATION WOULD BE UNLAWFUL. THE INFORMATION CONTAINED HEREIN IS RESTRICTED AND IS NOT FOR PUBLICATION, RELEASE OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN, OR INTO OR FROM THE UNITED STATES, AUSTRALIA, CANADA, JAPAN OR ANY OTHER JURISDICTION IN WHICH SUCH PUBLICATION, RELEASE OR DISTRIBUTION WOULD BE UNLAWFUL. 

 

 

20 December 2012

 

 

MADAGASCAR OIL LIMITED

("Madagascar Oil" or the "Company")

 

Update to Proposed Financing Transaction

 

 

Madagascar Oil (AIM: MOIL) is pleased to announce that, further to the announcement made on 18 December 2012 in respect of the proposed financing package to raise between US$45 million and US$60 million (gross), it is now intended that, due to anticipated increased demand from existing shareholders in the Company,Mirabaud Securities LLP is to increase the amount it is seeking to raise from US$15 million (gross) to US$20 million (gross). This will be achieved, assuming the full US$20 million is issued, through an increase in the placing from 46,875,000 to 62,500,000 Convertible Preference Shares, on the same terms as previously announced.

 

Accordingly, revised details of the effect of conversion of the Convertible Preference Shares on existing holders of the Common Shares and the resultant holdings of Benchmark and Persistency are set out in the table below:

 

 

Maximum dilution basis** (Including US$20m (gross) Mirabaud fundraise)

On issue, assuming immediate conversion*

3 years*

10 years*

New dilutive shares

210,000,000

272,734,375

417,109,375

Resultant total shares in issue

466,035,137

528,769,512

673,144,512

Dilution

45.06%

51.58%

61.96%

 

Resultant percentage shareholding:

Benchmark

34.66%

36.40%

39.32%

Persistency

16.79%

17.72%

19.28%

 

\* This assumes that all interest is paid in Common Shares and includes an arrangement fee of 4 per cent. payable, pro rata, to the Benchmark Parties and Persistency being settled via an issue of Common Shares at the Subscription Price and a proportion of commission fees being paid to Mirabaud in Common Shares. For illustrative purposes only, it has been assumed that all Convertible Preference Shares accrue interest for the full term with no time apportionment to reflect fixed interest payment dates, being every 6 months from the issue of the Tranche 1 Convertible Preference Shares and the actual date of the issue of the Tranche 2 Convertible Preference Shares .

** This represents the potential dilution to all existing shareholders assuming no participation by them in the placing.

 

All defined terms in this announcement have the meanings given to them in the announcement dated 18 December 2012.

 

 

 

Enquiries:

 

Madagascar Oil Limited

Andrew Morris, Non Executive Chairman

Paul Ellis, Chief Executive Officer

 

+1 713 357 4820

Strand Hanson Limited

Stuart Faulkner

Angela Hallett

David Altberg

 

+44 (0)20 7409 3494

Mirabaud Securities LLP

Rory Scott

 

+44 (0)207 878 3360

Pelham Bell Pottinger

Mark Antelme

Henry Lerwill

+44 (0)20 7861 3232

 

 

Or visit http://www.madagascaroil.com

 

 

 

 

 

This information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
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