Rockhopper Exploration plc, the oil and gas exploration and production company with key interests in the North Falkland Basin, announces the results of the Placing and Subscription which was announced yesterday.
The Company has raised aggregate gross proceeds of US$7 million (£5.75 million) through the successful Placing of, and Subscription for 82,182,776 Units in each case at the Issue Price of 7 pence per Unit. Each Unit comprises one New Ordinary Share and, for every two New Ordinary Shares subscribed for, one Warrant. This will result in the issue (subject to First Admission) of 82,182,776 New Ordinary Shares, and 41,091,388 Warrants.
The Issue Price of 7 pence represents a discount of 12.5 per cent. to the closing price on 14 June 2022, the last trading day prior to the announcement of the Capital Raise.
Canaccord Genuity and Peel Hunt acted as Joint Bookrunners in respect of the Placing.
The Placing was oversubscribed and the Company, having taken into account the strong support received from existing and new investors, decided to increase the size of the Placing. The additional funds raised in the Placing will be applied towards extending the Company's working capital beyond 12 months and supporting the Company through the period of the anticipated Sea Lion licence extension.
Application will be made to the London Stock Exchange for the 82,182,776 New Ordinary Shares to be admitted to trading on AIM. Subject, amongst other things, to the satisfaction or waiver of the conditions of the Placing Agreement, it is expected that First Admission will take place and dealings in the New Ordinary Shares will commence on AIM on or around 8.00 a.m. on 20 June 2022. The New Ordinary Shares will, when issued, be credited as fully paid and will rank pari passu in all respects with the existing Ordinary Shares at that time.
The Warrants will not be admitted to trading on AIM or on any other stock exchange. The Warrants are capable of being settled in CREST. It is currently intended that settlement of Warrants via CREST will be on the same timetable as settlement of the Placing Shares and Subscription Shares.
Immediately following First Admission, the Company's issued share capital will be 540,664,893 Ordinary Shares, with each share carrying the right to one vote. The Company does not hold any Ordinary Shares in treasury. The total voting rights figure immediately following Admission, of 540,664,893 may be used by shareholders (and others with notification obligations) as the denominator for the calculations by which they will determine whether they are required to notify their interest in, or a change to their interest in, the Company under the Disclosure Guidance and Transparency Rules.
The Company considers it important that existing Shareholders who are not able to take part in the Placing or the Subscription are given an opportunity to participate in the Capital Raising. The Company is therefore providing Qualifying Shareholders with the opportunity to subscribe at the Issue Price pursuant to an Open Offer, to raise gross proceeds of up to approximately US$5 million (approximately £4.1 million) if fully taken-up. The Open Offer will include an excess application facility to enable Qualifying Shareholders to apply for additional Units in excess of their entitlements under the Open Offer. Details of the Open Offer and the action to be taken by Qualifying Shareholders to subscribe for Units under the Open Offer will be set out in the Circular, which will be sent to Shareholders shortly.
Sam Moody, CEO of Rockhopper Exploration, said:
"We are delighted to receive such strong support in this process from both existing and new investors and look forward to using the proceeds to progress Sea Lion as we work closely with Navitas to move the project forward - we believe it is a clear endorsement of the potential value within Sea Lion and the strength of our new partnership with Navitas. We would encourage retail investors to participate in the Open Offer following such strong support from the market for this fundraising."