Perth-based oil and gas minnow Kairiki Energy has announced a $12.1 million capital raising to pay back company debts and provide additional working capital.
Kairiki announced today it would offer existing shareholders nine new shares for every two shares held, with the rights issue slated to be partially underwritten to $9 million.
IMC Oil & Gas Investment, which is Kairiki’s convertible note holder, will sub-underwrite the rights issue to $7.7 million.
Kairiki said the funds would be used to pay back debts arising under its convertible note with IMC and provide working capital.
At close of trade today, the company’s stock was steady at 0.1 cents.