MEO to Raise $1.69 million in Oversubscribed Share Placement
• Oversubscribed placement to raise $1.69 million - the maximum available under MEO’s remaining LR7.1 placement capacity
• Strong support from existing shareholders and new investors
• Share Purchase Plan will be offered to eligible shareholders subject to ASX waiver
• Funds raised will be used to accelerate MEO activities in Cuba, including the preparation of a drilling plan for up to two wells in Block 9, onshore Cuba
MEO Australia Limited (ASX: MEO) (“MEO” or “Company”) is pleased to announce that it has accepted commitments to raise approximately $1.69 million through a placement of approximately 46.9 million shares at $0.036 per share to qualified institutional and sophisticated investors (“Placement”). A number of existing shareholders showed strong support for the Placement and the Company has welcomed a number of high quality new investors to its share register.
The Placement price of $0.036 per share represents a ~17% discount to MEO’s volume weighted average price for the 10 business days up to and including 16 August 2016.
Proceeds from the Placement will be used to accelerate MEO’s onshore exploration activities on Block 9 in Cuba, including the preparation of a drilling program for up to two wells in Block 9 and for additional working capital purposes.
The Placement will be completed in a single tranche for the maximum number of shares pursuant to the Company’s remaining capacity under ASX Listing Rule 7.1. The new shares are expected to be allotted and commence trading on ASX on Monday 29 August 2016.
MEO Managing Director & CEO Peter Stickland commented:
"We are very pleased with the overwhelming support shown for the placement from both existing shareholders and new investors. The placement uses the maximum number of shares available through MEO’s remaining placement capacity under ASX Listing Rule 7.1. We are pleased to welcome a range of new high quality investors onto the MEO register and recognise the support of our existing shareholders.
The Placement will enable MEO to accelerate the work necessary to finalise a drilling plan for up to two wells in Block 9, onshore Cuba.”
MEO Price at posting:
4.7¢ Sentiment: Hold Disclosure: Held
