Mitchell Services (ASX:MSV) has raised $11.7 million through an...

Mitchell Services (ASX:MSV) has raised $11.7 million through an entitlement offer as part of a broader $20.2 million capital raising to fund the acquisition of Tom Browne Drilling Services.
   
Proceeds will also be used to meet working capital requirements and to retire debt.

The company had received applications for 247.6 million shares priced at $0.035, or a total of $8.7 million, from shareholders and applications for additional shares under the top up facility of about $1.1 million.

The shortfall of 61.1 million shares will be allotted to the sub-underwriters.

This follows the successful completion of the first tranche institutional placement completed on 22 August 2014 raising about $1.5 million. Shareholder approval has also been obtained for the second tranche institutional placement to raise $7 million.

The acquisition of Tom Browne strengthens its market presence by adding 29 drilling rigs to Mitchell’s fleet, bringing it up to 58.

It also increases the number of Tier 1 rigs to 21 from 8.

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