Global Iron plans to raise A$230 million ahead of a listing on the National Stock Exchange and is set to appeal a second knock back from the ASX in relation to the company's acquisition of African Petroleum.
Global Iron plans to raise A$230 million ahead of a listing on the National Stock Exchange and is set to appeal a second knock back from the ASX in relation to the company's acquisition of African Petroleum.
The company plans to offer 418 million shares at 55 cents with the offer set to close on June 11 2010.
Global intends to apply the funds raised under the placement to exploring the two prospective oil and gas exploration blocks off the coast of Liberia, West Africa.
Global is set to acquire the site following its acquisition of African Petroleum Corporation.
The company is currently in the throngs of appealing a decision by the ASX to not readmit it to admission and quotation if Global proceeds with the acquisition of African Petroleum.
Global has already appealed the decision once but the ASX confirmed its original stance in response to the appeal. Global plans to launch another appeal but a date for the hearing has not yet been set.
Shareholders will be meeting next month to vote on the acquisition of African Petroleum, the placement and the listing of the Company on National Stock Exchange and the possible delisting of the company from the ASX if the second appeal is unsuccessful.
Full announcement below:
Global Iron Limited wishes to advise that the attached Prospectus was lodged with ASIC today and is for the issue of up to 418 million shares at A$0.55 each to raise up to A$230 million. In addition, the Prospectus will assist the Company to meet the listing requirements of the National Stock Exchange.
The Offer under the Prospectus opens today and is expected to close on 11 June 2010. The Company expects that demand for this Placement will be strong, with senior executives of the Company having received a positive response at meetings with institutional investors and funds in London last month.
Global intends to apply the funds raised under the Placement to exploring the two highly prospective oil and gas exploration blocks off the coast of Liberia, West Africa that it will obtain a 100% interest in following its acquisition of African Petroleum Corporation Limited.
As previously advised, ASX informed the Company on 26 March 2010 that ASX will not readmit it to admission and quotation if it proceeds with the acquisition of African Petroleum (refer to ASX announcement dated 6 April 2010). Subsequent to this decision, the Company provided additional material to ASX in an attempt to address the concerns raised by ASX .
The Company appealed the 26 March Decision and the Appeal was heard by the ASX Appeal Tribunal on 30 April 2010. On 10 May 2010, ASX advised that it had affirmed the 26 March Decision, but directed that the ASX had erred in failing to take into account the Additional Submissions in exercising its discretion in respect of re‐admitting the Company to quotation post completion of the acquisition.
In accordance with the Tribunal Decision, the Company made a submission to ASX (which included the Additional Submissions) in respect of requoting the Company post completion of the acquisition of African Petroleum. On 19 May 2010, ASX advised the Company that it had affirmed its 26 March Decision ("19 May Decision"). The Company has appealed the 19 May Decision ("Second Appeal"). A date for the appeal hearing has not yet been set.
Shareholders will be meeting next month to vote (inter alia) on the acquisition of African Petroleum, the Placement and the listing of the Company on NSX and the possible delisting of the Company from ASX if the Second Appeal is unsuccessful.
The Board of Global would like to thank shareholders and those looking to participate in the Placement for their support, and believes the opening of the Offer is a significant milestone in the transformation into a successful oil and gas company.
