Andalas Energy and Power Plc, the AIM traded Indonesian focused energy company, has conditionally raised £600,000 via a placing (the Placing) of 600,000,000 ordinary shares of nil par value (the ‘Placing Shares’) at a price of 0.1 pence per share (the Placing Price). Certain Directors are participating in the Placing by way of a subscription for a total of 168,000,000 Placing Shares. The Placing Price represents a premium of 29% to the mid-market price at the time of the suspension of trading in the Company’s ordinary shares on AIM. Following today’s announcement, the Company has requested a restoration of trading in the Company’s ordinary shares, which will recommence trading on AIM from 7.30 a.m. on 23 May 2017.
Andalas CEO, David Whitby, said:
“The Directors’ participation in this placing at a 29% premium to the last traded share price demonstrates the team’s conviction that real progress continues to be made towards establishing Andalas as a leader in the gas to power space in Indonesia. The opportunity in front of us remains more compelling than ever and I look forward to updating the market as we look to generate significant value both for our new and existing shareholders.”
Details of the Placing and Total Voting Rights
The Placing is conditional only upon the lifting of the suspension in trading of the Company’s shares and admission of the Placing Shares to trading on AIM. The proceeds of the Placing will be used to provide additional working capital, as Andalas focuses on advancing its first Wellhead IPP project with Pertamina, Indonesia’s national energy company. In connection with the Placing, the Company has also issued 50,000,000 5 year warrants to third parties in lieu of fees, with an exercise price of 0.1 pence per warrant.
Application has been made to the London Stock Exchange for admission of the Placing Shares to trading on AIM (Admission) and it is expected that Admission will occur and that trading in the Placing Shares will commence at 8.00 am on 24 May 2017. The Placing Shares will rank pari passu in all respects with the Company's existing issued ordinary shares. Following Admission of the Placing Shares, the Company will have an enlarged issued share capital of 3,093,167,975 ordinary shares and there are no shares held in treasury. This figure may be used by shareholders to determine if they are required to notify their interest in, or a change to their interest in, the Company.
Lifting of Suspension
The Company notes the suspension in trading of its ordinary shares on AIM on 8 May 2017, and its announcement of 9 May 2017 referring to recent media speculation concerning a significantly discounted equity fundraising. The Board can confirm that at the time of the suspension, it was advised by its broker that it could raise up to £1.0 million at a price of approximately 0.06 pence per ordinary share.
However, the Board elected to pursue other alternatives and has now concluded the Placing at the Placing Price, which represents a significant premium of 29% to the mid-market price at the time of the suspension of trading in the Company’s ordinary shares on AIM. Following today’s announcement, the Company has requested a restoration of trading in the Company’s ordinary shares, which will recommence trading on AIM from 7.30 a.m. on 23 May 2017.
Discussions are currently ongoing with potential partners who have the appropriate technical and financial resources to co-develop and fund the roll-out of Andalas’ pipeline of projects, including the first IPP. The Company is encouraged by the calibre of the interested parties, a number of whom have completed detailed due diligence on both the Company and its projects.
Related Party Transaction
Certain of the Directors are participating in the Placing by way of a subscription for a total of 168,000,000 Placing Shares.
The subscription by certain of the Directors for Placing Shares pursuant to the Placing, constitutes a related party transaction under the AIM Rules for Companies. The independent Director for the purposes of the Placing, being Robert Arnott, having consulted with Cantor Fitzgerald Europe (the Company's nominated adviser), considers that the terms of the Placing are fair and reasonable in so far as the Company’s existing shareholders are concerned.