Boss Energy radically revises rights issue

Perth-based Boss Energy Ltd has been forced to dramatically revise its rights issue in the wake of the Opes Prime collapse, which has put its share price under considerable pressure.

In February, the company placed a total of 20.5 million shares, at 40 cents each, together with a total of 5.1 million options, to raise $8.2 million.

On 6 March, 2008 shareholders were offered a rights which offered one share for every four shares, at 40 cents per share plus one free listed option for every four shares subscribed for.

The proposed rights issue has now been amended to offer shareholders the right to subscribe for one new share , along with one free attaching listed option for every two shares subscribed at a offer price of 10 cents.

Boss Energy's executive chairman Robert Grover said that in the circumstances, it was unrealistic for the company to continue to pursue a rights issue at the previously noted prices, however the company does intend to continue with its plans for a rights issue to shareholders.

"The rights issue is intended to give shareholders an opportunity to reduce the average cost for their shareholdings if they should so wish whilst, at the same time, providing the company with a strong cash resource to rapidly progress its oil shale activities and for the further sourcing of appropriate merger and acquisition opportunities," said Mr Grover in a statement.

Boss Energy's principal activity is the exploration and development of oil shale project in Tasmania.

The company's shares have remained even, trading at 14 cents today.