Onshore conventional and unconventional gas play Metgasco is seeking to raise up to $10 million through EL&C Baillieu.
Metgasco went into a trading halt on Wednesday, as it meets with investors about a $10 million institutional placement.
The offer was priced at 20¢ a share, or an 29.8 per cent discount to its last closing price of 28.5¢.
The offer comes a day after the NSW government announced a series of coal seam gas regulations and renewed two of Metgasco’s licenses which sent the shares up 16 per cent.
Metgasco is an ASX-listed onshore conventional and unconventional gas company, with acreage in northern NSW’s Clarence Moreton Basin. It has a $97.1 million market capitalisation and implied enterprise value of $84.9 million.
Investors were told funds raised would be combined with existing $12 million cash balance and applied to Metgasco’s work program.
Institutional bids were due by 4pm on Friday.
That is so soft from management!! Why wouldn't they wait and see what the market did with the SP. And to offer it at such a huge discount the day after the NSW Gov decision and so much risk has been taken off is wrong.
MEL Price at posting:
28.5¢ Sentiment: LT Buy Disclosure: Held
