Wednesday May 6, 2015: Shares in Orca Energy (OGY) more than doubled this morning to a high of 2.5c after the company revealed that controversial wheeler-dealer Nathan Tinkler will become executive chairman.
Mr Tinkler, along with businessmen John Robinson Snr and Nick Paspaley, will inject a total of $20 million into Orca via a share placement in what is essentially a reverse takeover. John Robinson Jnr will also join the Orca Board.
The ASX announcement did not disclose the price of the placement, which comprises a total of 1.5 billion shares. However, it said that two free options would be issued for every seven of these new shares. The options have a strike price of 1.33c.
Orca said the proceeds of the raising and the $5 million the company expects to pocket from the sale of Cooper Basin assets would provide the "requisite funding to identify, evaluate and as appropriate, avquire or invest in assets in the energy sector".
"We believe that well-capitalised companies with a long-term investment strategy are well-placed to take advnatge of a depressed energy sector," Orca MD Greg Bandy said. "Orca is now in a position to do that."
Mr Tinkler also stands to reap up to 387 million free performance rights based on share price hurdles of 2.5c, 5c and 10c.
The placements and rights are subject to shareholder approval.
Mr Tinkler, along with businessmen John Robinson Snr and Nick Paspaley, will inject a total of $20 million into Orca via a share placement in what is essentially a reverse takeover. John Robinson Jnr will also join the Orca Board.
The ASX announcement did not disclose the price of the placement, which comprises a total of 1.5 billion shares. However, it said that two free options would be issued for every seven of these new shares. The options have a strike price of 1.33c.
Orca said the proceeds of the raising and the $5 million the company expects to pocket from the sale of Cooper Basin assets would provide the "requisite funding to identify, evaluate and as appropriate, avquire or invest in assets in the energy sector".
"We believe that well-capitalised companies with a long-term investment strategy are well-placed to take advnatge of a depressed energy sector," Orca MD Greg Bandy said. "Orca is now in a position to do that."
Mr Tinkler also stands to reap up to 387 million free performance rights based on share price hurdles of 2.5c, 5c and 10c.
The placements and rights are subject to shareholder approval.