Orcadian Energy plc raised £500,000 via a discounted placing of new ordinary shares to
certain institutional and other investors at 10 pence per share.
DISCOUNT
The placing on 1 February, conducted by way of an accelerated bookbuild process, was at a discount of approximately 33% to the closing price of 15 pence per ordinary share on 31 January 2023.
The placing shares will represent 7% of the enlarged issued share capital.
Following admission, the total number of ordinary shares in the capital of the company in issue will be 72,512,317 with voting rights.
USES
Net proceeds will help deliver Orcadian’s field development plan for the Pilot field, licence fees and contribute to working capital.
OUTSTANDING INVOICE
The company said it would pay £90,000 owed to Alisanos Geoscience Ltd for geoscience consultants over the past four months, by issuing 900,000 ordinary shares at the placing price.
Orcadian added it currently held £223,000 and its cash burn rate is £140,000 per month.
The company is also investigating other sources of funding to supplement proposed activities over the next 12 months.