FANTASTIC news to be able to raise in this environment shows the quality under water. we are on the way now and SP will take of itself in the long run. hang on tight now
best to all SH
FAR completes a $60 million capital raising
Not for release in the United States
- Placement to institutional and sophisticated investors
- Cash to fund ongoing Senegal drilling and evaluation program
FAR Ltd (ASX: FAR) is pleased to announce the successful completion of a placement to institutional and sophisticated investors to raise $60 million before expenses by issuing 705,882,353 shares (Placement). The Placement was significantly oversubscribed with strong support by existing shareholders and saw the introduction of new institutional investors to FAR’s register.
The proceeds from the placement (after costs) will be used to fund FAR’s continued participation in the drilling and evaluation program offshore Senegal.
The Placement was arranged by Bell Potter Securities Limited and RBC Capital Markets as Joint Lead Managers. The Placement price of 8.5 cents represents a 6.6% discount to the company’s last close price at 12 April 2016 of 9.1 cents and an 11.2% discount to the 5 day volume weighted average price to 12 April 2016 .
Upon completion of the Placement, the Placement shares will represent approximately 16% of the enlarged share capital of the company, which will have 4,413,532,452 ordinary shares on issue. The Placement shares, when issued, will rank equally in all respects with the existing ordinary shares.
The shares will be issued in two tranches:
- The first tranche to raise approximately $47 million is unconditional and settlement is expected to occur on Wednesday 20 April 2016 with normal trading to occur on Thursday 21 April 2016.
- The second tranche for the balance of approximately $13 million is subject to ASX Listing Rule 7.1 shareholder approval which is intended to be considered by shareholders at an Extraordinary General Meeting to be held on 26 May 2016. Settlement of the second tranche is expected to occur on Tuesday 31 May 2016 with normal trading to occur on Wednesday 1 June 2016.
Cath Norman FAR Managing Director said, “It is a testament to the quality of the Senegal project that FAR has successfully completed this capital rising in a tough market for oil explorers and developers. We are delighted to bring on board new, large institutional shareholders to help us progress the Senegal project for the benefit of all shareholders.”
This release is in relation to the matter referred to in the Company’s trading halt announcement of 13 April 2016. The trading halt can now be lifted.
(20min delay)