Corcel completes £1m placing with cornerstone investor

Corcel plc has completed a placing for £1,055,515 with an oil and gas focused cornerstone investor group.       

USES  

The fundraising was at a price of £0.0035, representing a 11% premium to the closing price of 27 March 2023 and a 16.6% premium to the 30-day VWAP.

Corcel issued 301,575,574 new ordinary shares of £0.0001 to a group of high-net-worth investors “supportive of the company’s recently announced oil and gas strategy”.

The investors will also receive a total 211,102,900 warrants to purchase new ordinary shares at a price of £0.008 per share for 24 months.   

The funding, which results in the group having representation on Corcel’s board, will be made in three tranches.

Two tranches, each of £300,000 for 85,714,285 new ordinary shares, will be settled on 7 April 2023 and 31 May 2023, and the third of £455,515 for 130,147,004 new ordinary shares by 30 June 2023.

On completion of the third tranche, the investor group will have in aggregate approximately 27.2% of Corcel’s issued share capital.

On admission of the first tranche of 85,714,285 new ordinary shares, Corcel’s total issued share capital will comprise 891,361,292 ordinary shares, each with one voting right.

The company holds no shares in treasury. 

Corcel intends to use the funds for working capital and potential acquisitions.

BOARD MEMBER

Following completion of the fundraise, the investor group nominated Antoine Karam as a non-executive to the Corcel board.

The company said that Mr Karam was an experienced investor who had previously been a board member of multiple listed IT and cyber security businesses. 

He is also connected to multiple institutional pools of capital and select business opportunities in the sector. 

For completion of the initial tranche, Mr Karam intends to create a dedicated investment company, which following this tranche would hold in aggregate approximately 9.6% of Corcel.