Perth-based Aurora Oil & Gas Ltd has finalised underwriting arrangements for its one-for-ten entitlements offer, guaranteeing a capital raising worth up to $9.7 million.
Perth-based Aurora Oil & Gas Ltd has finalised underwriting arrangements for its one-for-ten entitlements offer, guaranteeing a capital raising worth up to $9.7 million.
The company announced in July it had raised $10.6 million in a placement, along with plans to launch an entitlements issue of up to 18.2 million shares at 53 cents each.
The full text of a company announcement is pasted below
Aurora Oil & Gas Limited (ASX:AUT, "Aurora") is please to announce that it has finalised arrangements for the underwriting of the Company's 1 for 10 entitlement offer first announced to the market on 23 July 2007 (the "Offer").
Aurora's Chairman, Jon Stewart said "We are very pleased to complete this arrangement which provides certainty to our financial arrangements and ensures that Aurora is well financed with in excess of $23 million available for its US oil and gas projects. We are financed for our obligations across our significant acreage position and will look to expand operations following current drilling and testing results."
Details of the Underwriting Agreement
The Company has entered into underwriting agreements with Bell Potter Securities Limited, Stripe Capital (Corporate Authorised Representative of Australian Stockbroking and Advisory Services Ltd) and Tolhurst Limited (collectively the "Underwriters"), pursuant to which the Offer has, subject to certain terms and conditions, been fully
underwritten.
The Company will pay an underwriting fee of 5% of the amount underwritten. Any subunderwriting will be paid out of this fee. The Underwriters have the right to terminate the underwriting agreements on the occurrence of certain events ("Termination Events").
These Termination Events include the following specific events:
- material change - a material and adverse change occurs after the date of the agreements in:
- the financial or trading position of the Company or a subsidiary; or
- the industry in which the Company or a subsidiary operates;
- market movement - at any time after the date of the agreements:
- the All Ordinaries Index is 10% or more below its level as at the close of trading immediately preceding the date of the agreements;
- the S&P/ASX 200 Index is 10% or more below its level as at the close of trading immediately preceding the date of the agreements; or
- the S&P/ASX Small Ordinaries Index is 10% or more below its level as at the close of trading immediately preceding the date of the agreements.
Other Termination Events include contravention of applicable laws and regulations, insolvency, outbreak of war or hostilities in various locations, misleading statements in the Offer Document and criminal charges or convictions relating to any Director.
Should the underwriting agreements be terminated, the Directors reserve the right to place any shortfall at their discretion.
