Infrastrata PLC (LON:INFA) REPLACEMENT: Placing of shares to raise £700,000

InfraStrata plc (AIM: INFA), the UK quoted company focused on the development of natural gas storage capacity, is pleased to announce that it has raised £700,000 (before expenses) through a placing of 155,555,555 new ordinary shares of 0.01p.

Each in the Company (“Placing Shares”) at an issue price of 0.45p per share (the “Placing”). For each Placing Share subscribed in the Placing, the Company will issue one warrant to subscribe for one new ordinary share of 0.01p in the Company (“Ordinary Share”) at 1p per share (the “Warrants”).

The Company remains committed to obtaining a Final Investment Decision (FID) to fund the construction of its Islandmagee Gas Storage Project (the “Project”) by the end of 2019 as previously indicated. In preparation for this, the net proceeds of the Placing will be used to fund the costs of establishing a pre-construction environmental baseline. An environmental baseline is required to track changes against it throughout the construction and operational phases of the Project. This work is currently underway and the marine fieldwork will be completed in September 2019, with the aim to provide laboratory work and reports to the Company by the end of September.

The Company is awaiting confirmation from DAERA (Department for Agriculture, Environment and Rural Affairs (in Northern Ireland)) on the acceptance of all updated studies that have been provided to them so far and that have gone through various revisions following DAERA comments. These documents were one of the conditions of the Draft Marine Licence and the Company understands are a standard element of a construction project of this type. Next, InfraStrata anticipates being in a position to undertake the 42-day public consultation during Q4 2019, as scheduled.

The Company expects to provide DAERA with the pre-construction environmental baseline studies in October 2019 to ensure this information is available during the public consultation phase, and therefore any historic environmental information will have been updated and brings this workstream forward by eight weeks.

InfraStrata continues to work very closely with DAERA to ensure that the full and proper process required for the issuance of a full marine licence can be completed as soon as possible.

In terms of other initiatives recently announced, as previously stated, the Company anticipates being in receipt of grant monies of €1.6 million from the EU later this year, which will provide the Company with working capital for H1 2020 and to allow InfraStrata to progress its initiatives to diversify and reduce the risks associated with a one project organisation, including appraising and negotiating the acquisitions of an FSRU (floating gas storage regasification unit) project and a UK mainland gas storage project, as well as progressing the Gas Storage Agreement and related activities with Vitol SA.

John Wood, the CEO, commented: “We are committed to building a portfolio of projects and substantially increasing shareholder value over and above the current Islandmagee project. It is essential we undertake activities to ensure the Islandmagee project progresses at speed to secure the Marine Licence and Project funding. When these two items are achieved it will enable us to proceed to FID, and as previously mentioned we are all working hard to make this happen as soon as we can and we have no reason to believe a Marine Licence will not be issued in due course.”

Details of the Placing

The Placing will result in the issue of 155,555,555 new Ordinary Shares, representing approximately 10.43 per cent. of the Company’s issued ordinary share capital as enlarged by the Placing. In addition, 155,555,555 warrants to subscribe for 155,555,555 new Ordinary Shares at 1p per share will also be issued. The Warrants can be exercised for 18 months from the date of Admission (as defined below).

The application will be made for the Placing Shares to be admitted to trading on AIM and it is expected that their admission to AIM will take place on or around 22 August 2019 (“Admission”). The issue of the Placing Shares and Warrants is conditional upon, inter alia, Admission occurring.

The Company has entered into a Placing Agreement with Allenby Capital Limited (“Allenby Capital”) under which Allenby Capital has, on the terms and subject to the conditions set out therein (including Admission), undertaken to use its reasonable endeavours to procure subscribers for the Placing Shares at the Placing Price. The Placing Agreement contains certain warranties and indemnities from the Company in favour of Allenby Capital. The Placing is not being underwritten by Allenby Capital or any other person. The Placing is conditional, inter alia, upon the Placing Agreement not being terminated prior to Admission (and in any event no later than 8.00 a.m. on 6 September 2019).

The Placing Shares, when issued and fully-paid, will rank pari passu in all respects with the Company’s existing Ordinary Shares, including the right to all dividends or other distributions declared, made or paid after the date of issue of the Placing Shares. The Placing Shares will be issued utilising existing share authorities to issue new shares on a non-pre-emptive basis.

Total Voting Rights

Upon Admission, the Company’s issued share capital will consist of 1,492,035,265 Ordinary Shares with one voting right each. The Company does not hold any Ordinary Shares in treasury. Therefore, the total number of Ordinary Shares and voting rights in the Company will be 1,492,035,265. With effect from Admission, this figure may be used by shareholders in the Company 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, the share capital of the Company under the FCA’s Disclosure Guidance and Transparency Rules.

Market Abuse Regulation (MAR)

MAR came into effect from 3 July 2016. Market soundings, as defined in MAR, were taken in respect of the Placing with the result that certain persons became aware of inside information, as permitted by MAR. That inside information is set out in this announcement has been disclosed as soon as possible in accordance with paragraph 7 of article 17 of MAR. Therefore, those persons that received inside information in a market sounding are no longer in possession of inside information relating to the Company and its securities.


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