Predator Oil & Gas Holdings plc is to raise £3.3 million via a placing to fund drilling at its onshore gas operations in Morocco.
PLACING
The company conditionally placed 60,000,000 new ordinary shares of no par value at 5.5 pence each, lower than yesterday (Tuesday)’s price of 8.3 pence.
Predator said that the placing was significantly oversubscribed and utilised the company’s existing headroom shares.
STOCK LENDING AGREEMENT
The company added it currently had insufficient headroom to enable the issue and admission of all of the 60,000,000 placing shares.
Predator proposes to issue and admit 45,000,000 new ordinary shares (up to its existing headroom).
Director and executive chairman, Paul Griffiths will loan, in a stock lending agreement, 15,000,000 of his existing shares to settle the placing.
The company will issue Mr Griffiths 15,000,000 shares when it can issue further shares.
Interest shall accrue on the loan at 6% per annum of the principal sum of £825,000, being the market value of 15 million shares at the placing price of 5.5 pence per share.
The default rate of interest under the stock lending agreement for any sum which is not paid when due is 12% per annum.