re: Ann: MEO acquires 30% equity in South Mad... Wonder if we...

re: Ann: MEO acquires 30% equity in South Mad... Wonder if we got a bargain of $500,000 off a distressed seller.

Today

AED Oil?s plan to raise $6.5 million through an underwritten renounceable rights issue is up in the air after Patersons Securities withdrew its commitment to underwrite the raising.
Earlier this month, AED announced the capital raising under which eligible shareholders would be able to subscribe to one new fully paid share for every four shares held, at a discount price of 12.5c per share.

Patersons Securities was to fully underwrite the rights issue and had confirmed acceptance of sub-righting positions in respect to 100% of the new shares and options available for issue.

AED had also agreed to issue up to 17,481,595 options on the basis of one option for every three shares sub-underwritten to the sub-underwriters appointed by Patersons.

However, AED went into a trading halt this morning after it announced that Patersons had withdrawn its commitment to underwrite the rights issue.

The company said it had been in discussions with a number of parties and one party in particular in relation to potential replacement transactions but was not yet in the position to make an announcement to market.

?AED believes that suspension is necessary as it does not believe that trading in an informed market can occur in the present circumstances until AED has finalised discussions currently being held.?

The trading halt will be in place until June 29 or when an announcement has been made.

AED was planning to use the funds for its projects in Australia, Indonesia and Brunei.