West Perth-based Antares Energy has pocketed $10 million and plans to raise a further $2 million to buy additional Eagle Ford shale acreage in Texas and boost working capital.
West Perth-based Antares Energy has pocketed $10 million and plans to raise a further $2 million to buy additional Eagle Ford shale acreage in Texas and boost working capital.
The company said it has placed 40 million shares at 25 cents each to clients of lead manager Patersons Securities, which will also manage a $2 million share purchase plan.
Shares in Antares shed 1.5c to 29.5c at 13:32 AEST.
The announcement is below:
The directors of Antares Energy Limited (ASX: AZZ, "Antares") are pleased to advise completion of a placement of 40,000,000 shares to raise $10,000,000 (Placement). The share placement was undertaken by lead manager Patersons Securities Limited to a range of leading institutions and sophisticated investors.
In keeping with the 'Capital Raising' page number 17 of the attached 'Investor Update and Capital Raising', July 2009, presentation; Antares sought to issue 27,000,000 shares at 25 cents to raise $6,750,000. However, due to overwhelming demand for the offer, Antares closed the book build process quickly allowing the issue of 40,000,000 shares at 25 cents to raise $10,000,000 resulting in a significant scale back of applications.
The board wishes to thank Patersons Securities Limited for the exemplary professional manner in which they assisted Antares to fund this purchase of additional Eagle Ford shale acreage while introducing institutions of the highest calibre to the Antares share registry.
Additionally Patersons Securities Limited will act as lead manager to a Share Purchase Plan (SPP). Under the SPP all eligible shareholders will have the opportunity to subscribe for up to $15,000 worth of fully paid ordinary shares. New shares under the SPP will be offered at the same price as the Placement, being 25 cents per share, a 18.5% discount to the volume weighted average share price for the 5 trading days prior to 5 August 2009. No brokerage, commission or other transaction costs apply to applicants for the shares issued under the SPP.
The SPP is proposed to be capped at 8,000,000 shares to raise up to $2,000,000. The offer is open to all holders of fully paid ordinary shares registered on the Company's share register at the record date of 20 August 2009, with a registered address in Australia and New Zealand.
The board has taken this step to provide an opportunity for shareholders to increase their participation in the future growth of the Company on similar terms to those of the Placement.
Monies raised through the Placement and SPP will be used to purchase additional Eagle Ford shale acreage and to augment working capital.
Details of the SPP offer will be set out in the offer letter, the SPP terms, and the application form to be mailed to shareholders in due course.
The offer will be open until the closing date of 9 September 2009. Antares proposes to allot the shares issued under the SPP on 16 September 2009 and trading of the shares is expected to commence on the ASX on 18th September 2009.
