Kinetiko shares lower on placement

Shares in Perth-based oil and gas explorer Kinetiko Energy have tanked after the company emerged from a trading halt with news of a heavily discounted share placement.

Kinetiko announced today it had raised around $1.7 million through the placement of 11.3 million shares to institutional and sophisticated investors at 15 cents per share, representing a 22 per cent discount to the company's five-day volume-weighted average price. 

Argonaut acted as sole lead manager to the placement.

Kinetiko placed its shares in a trading halt last Tuesday and had expected to resume trading by the end of that week, but instead requested a voluntary suspension of its shares.

The company said proceeds from the placement would be used to fund pilot and core hole drilling programs at its Amersfoort project in South Africa.

Kinetiko shares fell by 18.9 per cent to close the day's trade at 15 cents.