PetroNeft (AIM: PTR), the 50% owner and operator of Licences 61 and 67, Tomsk Oblast, Russian Federation, is pleased to announce a conditional placing of 107,755,037 shares at a price of 1.5p.
· Gross proceeds of US$2.12 million raised at £0.015 per share in a placing with institutional and other investors, a premium of approximately 58%
· Money raised will primarily be used to fund the 2020 capital investment program
· Significant commitment from directors, supporting 44% of the placing
· Petrogrand Loan which was scheduled to expire on 15th December 2019 has been extended for one year with a potential further year extension to 15th December 2021 if certain milestones are met.
· EGM to held in Dublin on 7th January to approve capital raise.
PetroNeft has agreed the terms of a conditional placing of 107,755,037 new Ordinary Shares at £0.015 (€0.0178) per Ordinary Share (the "Placing Shares"). The placing will raise new capital of US$1.6 million and in addition 26,985,227 of the placed shares will be used to settle outstanding salary to senior management and Board Director Fees.
The Placing consists of 107,755,037 Shares at a price of £0.015 each, conditional upon receiving shareholder approval of Resolution 1 at the Extraordinary General Meeting ("EGM") of the Company which will be held on 7 January 2020, on Admission and the terms of the subscription letters entered into with the Placees. Application for Admission in respect of the Placing Shares will be made to both the London Stock Exchange and Euronext Dublin and, subject to the passing, without amendment, of Resolution 1 at the EGM, it is expected that Admission will become effective and that dealings in the Placing Shares will commence on AIM and Euronext Growth at 8.00 a.m. on 9 January 2020.
Following Admission, the Company's total issued share capital consists of 828,885,530 Ordinary Shares of €0.01 each. The Company does not hold any Ordinary Shares in treasury. This figure may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in PetroNeft under the Transparency (Directive 2004/109/EC) Regulations 2007 and the Transparency Rules.
The Placing Price represents a premium of approximately 58 per cent to the closing price of £0.0095 per Ordinary Share on 11 December 2019, being the latest practicable date on which the Company's shares traded on AIM and Euronext Growth ahead of the announcement of the Placing. Following their issue, the Placing Shares will represent approximately 13 per cent of the Enlarged Issued Share Capital.
An EGM Circular and Notice of EGM will be posted to Shareholders on 13 December 2019 and be made available on www.petroneft.com on the same day. The EGM will be held in at the Clayton Hotel, Ballsbridge, Dublin 4, Ireland at 11.00 AM on Tuesday 7 January 2020.