Petro Matad Ltd (MATD.L) Results of Fundraise

Petro Matad Limited (“Petro Matad” or the “Company”) (AIM: MATD), the AIM quoted Mongolian oil company, is pleased to announce that following the accelerated bookbuild which was announced on 14 July 2021.

The Company has conditionally raised gross proceeds of US$ 9.7 million through the oversubscribed placing (the “Placing”) of, and subscriptions by a director and shareholder of the Company (the “Subscription” or “Subscriptions”) for, 200,624,830 new Ordinary Shares (“Placing Shares” and “Subscription Shares”) at a price of 3.5p (the “Placing Price”) per share.

The Company is also pleased to announce that, following the further announcement made yesterday regarding the launch of a proposed retail offering via PrimaryBid (the “Retail Offer”), it has successfully conditionally placed 14,285,714 new Ordinary Shares (the “Retail Shares”) at the Placing Price, raising gross proceeds of approximately US$0.7 million.

Shore Capital Stockbrokers (“Shore Capital”) and Arden Partners (“Arden”) acted as Joint Bookrunners.

Highlights

· The Company has conditionally raised, in aggregate, approximately US$10.4 million at a price of 3.5 pence per new Ordinary Share.

· Petrovis Matad Inc. (a Substantial Shareholder as defined under the AIM Rules) is participating in the Subscription for a total of 43,321,299 New Ordinary Shares with a total value of approximately US$2.1 million.

· Mike Buck, CEO of Petro Matad, is participating in the Subscription for a total of 2,062,919 New Ordinary Shares with a total value of approximately US$100,000 .

· Conditionally, in aggregate, a total of 214,910,544 New Ordinary Shares will therefore be issued, representing approximately 24 per cent. of the Enlarged Share Capital.

Admission

Application will be made for the admission of the Placing Shares and the Retail Shares to trading on the AIM market of London Stock Exchange plc (“Admission”). It is ‎expected that such Admission will take place at or around 8.00 a.m. (London time) on 22 July 2021.

Subject to the passing of the Resolutions at the Extraordinary General Meeting (as referred to below), application will also be made for the admission of the Subscription Shares and the Open Offer Shares (as defined below) to trading on the AIM market of London Stock Exchange plc (“SecondAdmission”). It is ‎expected that such Second Admission will take place at or around 8.00 a.m. (London time) on 6 August 2021.

Open Offer

As announced yesterday, Petro Matad also intends to raise up to approximately US$ 2 million through the issue of up to 42,588,894 new Ordinary Shares (the “Open Offer Shares”) pursuant to an open offer (the “Open Offer”), to allow Qualifying Shareholders, including those who are not participating in the Placing or the Retail Offer, to subscribe for new Ordinary Shares at the Placing Price. This is on the basis of 1 Open Offer Share for every 16 Existing Ordinary Shares held by the Qualifying Shareholder at the Record Date of 14 July 2021. Completion of the Open Offer remains subject, inter alia, to the passing of the Resolutions at the Extraordinary General Meeting. The Company intends to publish and send a circular to Shareholders in connection with the Open Offer (the “Circular”) on or around 19 July 2021. The Circular will also be available on the Company’s website: www.petromatadgroup.com.

Total voting rights

Following Admission of the Placing Shares and the Retail Shares, the total number of Ordinary Shares and voting rights in the Company is expected to be 850,948,632. The Company does not hold any shares in treasury.

The above figure may be used by Shareholders 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 and Transparency Rules.

Following Second Admission of the Subscription Shares and the Open Offer Shares (assuming full take up of the Open Offer), the total number of Ordinary Shares and voting rights in the Company is expected to be approximately 938,921,744. The Company does not hold any shares in treasury.

Following Second Admission of the Subscription Shares and the Open Offer Shares (assuming full take up of the Open Offer), the above figure may be used by Shareholders 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 and Transparency Rules.

Unless otherwise defined, all capitalised terms in this Announcement are defined in the Company’s announcement released yesterday.

Notice of Extraordinary General Meeting

Completion of the Subscription and Open Offer is subject, inter alia , to Shareholder approval of the Resolutions to authorise the issue of the Subscription Shares and Open Offer Shares.

A Circular explaining the background to and reasons for the Open Offer and containing the Notice of Extraordinary General Meeting, which will take place on 5 August 2021, is expected to be posted to shareholders on or around 19 July 2021. A copy of the Circular and the Notice will thereafter be made available on the Company’s website: www.petromatadgroup.com.

Directors and related parties’ participation

On completion of the Fundraising, the following are expected to be the shareholdings of existing substantial shareholder and Director who have participated in the Subscription:

*Following completion of the Placing, Retail Offer and Subscriptions, but excluding the Open Offer.

As a substantial shareholder, Petrovis Matad Inc.’s intended participation in the Subscription is deemed to be a related party transaction for the purposes of AIM Rule 13. The independent Director of Petro Matad (being for this purpose Tim Bushell), having consulted with the Company’s nominated adviser , Shore Capital, considers that the terms of Petrovis’s participation in the Subscription are fair and reasonable insofar as Shareholders are concerned.

As a Director, Mike Buck’s intended participation in the Subscription is deemed to be a related party transaction for the purposes of AIM Rule 13. The independent Director of Petro Matad (being for this purpose Tim Bushell), having consulted with the Company’s nominated adviser, Shore Capital, considers that the terms of his participation in the Subscription are fair and reasonable insofar as Shareholders are concerned.

Mike Buck, CEO of Petro Matad, commented:

“The Board is delighted by the support we have received from new and existing shareholders, and is pleased to welcome a number of new blue chip institutions to the register.

This fundraise will allow us to commence production from the Heron Field, with the completion of the Heron 1 well and the drilling of the H2 and H3 wells.”

This Announcement has been approved by the Board of Petro Matad Limited.

Enquiries :

Petro Matad Limited

Mick Buck, Chief Executive Officer

+44 162 462 7099


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