Join our daily newsletter At The Bell to receive exclusive market insights
- Doriemus (DOR) shares skyrocket after the British oil and gas company locks in a capital raising for up to $3.34 million
- The new cash will be netted through a placement, an entitlement issue and a shortfall facility in which shares will be issued at 5.5 cents each
- Subject to shareholder approval, free attaching options will also be issued on a one-for-two basis, exercisable for 10 cents and expiring in five years
- Doriemus will allocate the new funds towards advancing its UK and European assets and assessing additional oil and gas opportunities
- The company expects placement shares will be issued on June 10, 2021
- DOR is trading 113 per cent higher at 16 cents at 1:19 pm AEST
Doriemus (DOR) shares have skyrocketed after the British oil and gas company locked in a capital raising for up to $3.34 million.
The new cash will be netted through a placement, an entitlement issue and a guaranteed shortfall facility in which shares will be issued at 5.5 cents each.
Doriemus has allocated the new funds to advancing its UK and European assets and assessing additional oil and gas opportunities. Additionally, the cash will cover corporate and administrative costs, as well as those of the capital raising, and provide working capital.
The capital raising
Under the single tranche private placement, nearly 14.5 million shares will be issued to sophisticated and professional investor clients of lead manager, Inyati Capital. This will raise close to $800,000.
The pro-rata non-renounceable rights issue will occur on a 1:2 ratio post-placement and raise around $1.9 million. The shortfall facility will raise up to $550,000.
The company expects placement shares will be issued on June 10, 2021.
Subject to shareholder approval, free attaching option will also be issued on a one-for-two basis on all shares issued under the capital raise, exercisable for 10 cents and expiring in five years.
DOR is trading 113 per cent higher at 16 cents at 1:19 pm AEST.
