Petro Matad Limited, the AIM quoted Mongolian oil company, is pleased to announce that following the accelerated bookbuild which was announced on 2 February 2023, the Company has conditionally raised gross proceeds of US$6.0 million through the Capital Raising (the "Placing") of, and subscriptions by a director and shareholder of the Company (the "Subscription" or "Subscriptions") for, 195,121,952 new Ordinary Shares ("Placing Shares" and "Subscription Shares") at a price of 2.5p (the "Placing Price") per share.
Shore Capital Stockbrokers ("Shore Capital") and Zeus Capital ("Zeus") acted as Joint Bookrunners.
Capitalised terms used in this announcement (this "Announcement") have the meanings given to them in the launch announcement, unless the context provides otherwise.
Highlights
· The Company has conditionally raised, in aggregate, US$6.0 million at a price of 2.5 pence per new Ordinary Share.
· Petrovis Matad Inc. (a Substantial Shareholder as defined under the AIM Rules) is participating in the Subscription for a total of 32,520,324 Subscription Shares with a total value of US$1.0 million.
· Mike Buck, CEO of Petro Matad, is participating in the Subscription for a total of 813,008 Subscription Shares with a total value of US$25,000.
· Conditionally, in aggregate, a total of 195,121,952 New Shares will therefore be issued, representing approximately 17.8 per cent. of the enlarged share capital.
Retail Offer
As part of the Capital Raising, the Company announced on 2 February 2023 that it was launching a separate retail offer of up to 20,000,000 new Ordinary Shares at the Placing Price on the BookBuild Platform to raise up to a further £500,000 (US$615,000) to provide existing retail shareholders in the United Kingdom with an opportunity to participate in the Capital Raising. A separate announcement will be made on the result of the Retail Offer, expected to be released on 8 February 2023.
Admission
Application will be made for the admission of the Capital Raising Shares to trading on the AIM market of London Stock Exchange plc ("Admission"). It is ?expected that such Admission will take place at or around 8.00 a.m. (London time) on 10 February 2023.
Related Party Transaction
As a substantial shareholder, Petrovis Matad Inc.'s participation in the Subscription is deemed to be a related party transaction for the purposes of AIM Rule 13. The independent director of Petro Matad (being for this purpose Tim Bushell), having consulted with the Company's nominated adviser, Shore Capital, considers that the terms of Petrovis Matad Inc.'s participation in the Subscription are fair and reasonable insofar as Shareholders are concerned.
As a director, Mike Buck's intended participation in the Subscription is deemed to be a related party transaction for the purposes of AIM Rule 13. The independent Director of Petro Matad (being for this purpose Tim Bushell), having consulted with the Company's nominated adviser, Shore Capital, considers that the terms of his participation in the Subscription are fair and reasonable insofar as Shareholders are concerned.
