Echo Energy PLC Issue of Equity (0907U)
July 27 2020 - 1:00AM
UK Regulatory
TIDMECHO
RNS Number : 0907U
Echo Energy PLC
27 July 2020
27 July 2020
Echo Energy plc
("Echo" or "the Company")
Issue of Equity
Echo Energy, the Latin American focused upstream oil and gas
company, announces the conditional placing of new ordinary shares
in the Company ("Ordinary Shares") to raise gross proceeds of
GBP475,000 (the "Placing").
Pursuant to the Placing Echo Energy has conditionally issued
95,000,000 new Ordinary Shares (the "Placing Shares") at a placing
price of 0.5p per Placing Share, with warrants attached to the
Placing Shares on a 1-for-1 basis. As a result, the Company has
also conditionally issued 95,000,000 warrants to subscribe for new
Ordinary Shares at a price of 1.0p per new Ordinary Share (being a
54 per cent premium to the closing mid-market price per Ordinary
Share price on Friday 24 July 2020) at any time until the second
anniversary of issue (the "Placing Warrants"). In addition to the
Placing Warrants, the Company has also conditionally issued
5,700,000 warrants to subscribe for new Ordinary Shares at any time
until the second anniversary of issue and with an exercise price of
0.8p per Ordinary Share ("Fee Warrants") in respect of fees
incurred in connection with the Placing.
The Placing Shares will, when issued, rank pari passu in all
respects with the existing Ordinary Shares and application will be
made for the Placing Shares to be admitted to trading on AIM
("Admission"). Admission is expected to take place on or around
8.00 a.m. on 10 August 2020.
The net proceeds of the Placing of approximately GBP450,000 will
strengthen the Company's cash position, will enable acceleration of
prioritised activities in respect of the previously announced
initial portfolio of workover and intervention operations at Santa
Cruz Sur in Argentina and be applied towards the Group's general
working capital requirements.
Following the issue of the Placing Shares, the Company's issued
share capital will consist of 806,717,587 ordinary shares. Each
share has one voting right and no shares are held in treasury;
these figures may be used by shareholders in the Company as the
denominator for the calculation by which they will determine if
they are required to notify their interest in, or a change to their
interest in, the share capital of the Company under the Financial
Conduct Authority's Disclosure Guidance and Transparency Rules.
Novum Securities Limited ("NSL") is acting as placing agent to the
Placing and the issue of the Placing Shares, the Placing Warrants
and the Fee Warrants are conditional on Admission and on a placing
agreement between the Company and NSL becoming unconditional in all
respects and not being terminated in accordance with its terms.
For further information, please contact:
Echo Energy via Vigo Communications
Martin Hull, Chief Executive Officer
Vigo Communications (PR Advisor)
Patrick d'Ancona
Chris McMahon +44 (0) 20 7390 0230
Cenkos Securities (Nominated Adviser)
Ben Jeynes
Katy Birkin +44 (0) 20 7397 8900
Shore Capital (Corporate Broker)
Jerry Keen +44 (0) 20 7408 4090
The information communicated within this announcement is deemed
to constitute inside information as stipulated under the Market
Abuse Regulation (EU) No. 596/2014. Upon the publication of this
announcement, this inside information is now considered to be in
the public domain.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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