Shares of Lansdowne Oil & Gas (AIM: LOGP), a micro-cap Irish oil company, fell over 30% in Thursday morning’s trading as the firm announced plans for an equity funding round of up to £200,000.
The funding strategy includes issuing two batches of new shares. Initially, the firm plans to generate £60,000 through the sale of 60 million shares at a price of 0.1p each.
A further conditional amount of £140,000 is expected to be raised at the same price, but this is subject to shareholder approval at an Extraordinary General Meeting (EGM) scheduled for 9 August.
The proceeds from this equity funding round, termed ‘light on’ money, are anticipated to cover Lansdowne’s operational costs until October. This is a part of the company’s strategy to sustain operations while its ongoing dispute with the Irish government continues.
The company announced that its legal advisors submitted a notice on 19 June, urging the Republic of Ireland to engage in discussions to resolve the dispute within three months.
In parallel, Lansdowne has stated it will “further talks with external litigation funders.” It is noteworthy that several such entities have already expressed their interest in supporting the company.
