Armour Energy (ASX:AJQ) - Executive Chairman, Nicholas Mather
Executive Chairman, Nicholas Mather
Source: Armour Energy
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  • Armour Energy (AJQ) has received firm commitments to undertake an $11.5 million private placement
  • More than 82 million shares will be issued to institutional and sophisticated investors a 3.5 cents, representing a 10.2 per cent discount to the 15-day volume-weighted average price
  • Furthermore, shareholders will receive one free attaching option for every four shares subscribed for, exercisable at 5 cents with expiry on February 29, 2024
  • Armour will use the funds to pay transaction costs associated with the demerger of the Northern Basin Business and the initial public offering of McArthur Oil & Gas
  • The company will also use the money to undertake work at the Kincora Gas Field and pay general working capital and costs associated with the placement
  • Armour is down 5 per cent on the market and shares are trading at 3.8 cents

Armour Energy (AJQ) has received firm commitments to undertake an $11.5 million private placement.

The company entered a trading halt on March 16 but did not disclose how much it intended to raise or what it would be using the funds for.

The money will be raised through the issue of 82,142,857 shares to institutional and sophisticated investors at 3.5 cents.

This price represents a 12.5 per cent discount to Armour’s last close of 4 cents on March 15 and a 10.2 per cent discount to the 15-day volume-weighted average price.

Further, shareholders will receive one free attaching option for every four shares subscribed for, exercisable at 5 cents with expiry on February 29, 2024.

The placement was managed by Bizzell Capital Partners and JB Advisory Partners who acted as Joint Lead Managers.

Armour will use the funds to pay transaction costs associated with the demerger of the Northern Basin Business and the initial public offering (IPO) of McArthur Oil & Gas.

The company will also use the money to undertake work at the Kincora Gas Field and pay general working capital and costs associated with the placement.

“This is a very good result and the company has seen very significant support for this equity capital raise in support of the proposed demerger and IPO of the Northern Basin Business, McArthur Oil & Gas,” CEO Brad Lingo said.

“In engaging with institutional investors there has been a great deal of interest in the prosed IPO of McArthur Oil & Gas and investors positioning themselves to participate in and support the demerger,” he added.

Armour is down 5 per cent on the market and shares are trading at 3.8 cents at 1:46 pm AEDT.

AJQ by the numbers
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