Angus Energy (LON: ANGS) shares tumbled Monday after it announced a fundraise of approximately £7 million to accelerate field development and production and to cover a cost overrun and hedge payments.
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The oil and gas development firm said it will raise the funds via a placing of approximately 115,000,000 new ordinary shares to institutional investors to raise about £2 million and a direct subscription of 316,000,000 new ordinary shares at a price of 1.65p to raise around £5 million.
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The fundraising price represents a discount of approximately 11% to the closing price of 1.86p per share on December 16, 2022.
Following the news this morning, Angus Energy shares plunged, hitting a low of 1.35p. It is currently trading around the 1.52p mark, down over 18% on the day. However, the stock has rallied for most of 2022, up more than 125%.
Angus Energy will also issue warrants to placees and subscribers in the fundraising based on one warrant for every two new ordinary shares. Each warrant grants the holder the right to subscribe for one additional new share at the fundraising price and is exercisable for 3 years from the date beginning six months after the date of issue.
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