A good find Buddy. I was searching for a company with a matching trading halt this morning, but didn't think to look for an after close on Friday halt. If it is what it looks like then it could be a pretty good deal. Large production, cashflow neutral/positive with cap raising to pay down debt (and therefore interest payments) and to fund acquisition(s) in a depressed oil price environment.
The bids by 4pm Tuesday aligns nicely with our halt.
Stockbrokers Canaccord Genuity and Euroz Securities were seeking to raise $80 million for Sundance Energy on Friday night.
The brokers were seeking to place new shares in a two-tranche placement at 13¢ a share.
The stock closed at 16.5¢ on Friday.
Investor sources said the deal was about 75 per cent covered by the time it launched late on Friday.
The brokers were seeking bids by 4pm on Tuesday, according to terms sent to potential investors.
The placement was split into tranches of 62.8 million shares and 552.6 million shares. The second and large tranche was subject to shareholder approval.
Sundance Energy shares went into a halt after market on Friday.
The company had a a $93 million market capitalisation prior to the raising.
It comes only hours after the company's annual general meeting, when Sundance chairman Mike Hannell flagged the company's intention to consider acquisition opportunities at a time when valuations in the oil and gas industry were depressed.
MEL Price at posting:
5.3¢ Sentiment: None Disclosure: Held
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