Zephyr yesterday announced a placing and subscription of 500 million new ordinary shares (the ‘Placing Shares’), at a price of 2.0p per Placing Share, to raise £10 million before expenses (the ‘Placing’).
It is intended that the proceeds will be used to fund the Paradox Project’s (‘the Paradox’, ‘the Project’) upcoming lateral well (the ‘Paradox Lateral’) while also being used to acquire and fund new oil producing interests in the Bakken Formation USA (‘the Acquisition).
The Board’s objective is to enable Zephyr’s transformation into a self-sustaining platform for organic growth with a diverse portfolio of production assets in two established USA oil producing basins. Of the funds raised in the Placing, £6 million (the ‘second tranche’) is conditional, inter alia, on approval by the Group’s shareholders at a General Meeting to be held on 16 April 2021, with the balance (the ‘first tranche’) being raised within existing share allotment authorities.
Importantly in this respect Board members, including the Chairman, CEO and CFO, agreed to subscribe the Placing either directly or through their investment vehicles, which was also strongly supported by a range of new and existing institutional investors, family offices, and other investors having been conducted by TPI acting as the Group’s sole broker.
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