NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES, AUSTRALIA, CANADA OR JAPAN OR ANY OTHER JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A BREACH OF THE RELEVANT SECURITIES LAWS OF SUCH JURISDICTION.
This announcement does not constitute a prospectus or offering memorandum or an offer in respect of any securities and is not intended to provide the basis for any investment decision in respect of Egdon Resources plc or other evaluation of any securities of Egdon Resources plc or any other entity and should not be considered as a recommendation that any investor should subscribe for or purchase any such securities.
EGDON RESOURCES PLC
(“Egdon” or the “Company”)
Posting of Open Offer Circular
Egdon is pleased to announce that, further to its announcement of 1 November 2016, it has today posted a circular (the “Circular”) to Qualifying Shareholders regarding an Open Offer of up to approximately £2.06 million.
The Circular is also available on the Company’s website at the bottom of this webpage
All capitalised terms in this announcement have the same meanings as those given to them in the Circular, unless the context otherwise requires.
The Open Offer is being made to Qualifying Shareholders on the register as at the Record Date of close of business on 7 November 2016, for up to 15,234,093 Open Offer Shares1 at 13.5 pence per Open Offer Share (being the same price as the Issue Price for the Subscription, announced on 1 November 2016) on the basis of:
1 Open Offer Share for every 16 Existing Ordinary Shares
As announced on 1 November 2016, the Issue Price represented a discount of approximately 10.0% to the Volume Weighted Average Price of an Existing Ordinary Share in the seven days prior to 1 November 2016.
Qualifying Shareholders are also being given the opportunity, provided that they take up their Open Offer Entitlements in full, to apply for additional Open Offer Shares through an Excess Application Facility.
Full details of the Open Offer, including terms and conditions and details on how to accept the Open Offer, are set out in the Circular posted to Qualifying Shareholders today and available on the Company’s website.
As a result of the exercise of share options by an employee, on 4 November 2016 Egdon Resources plc (AIM:EDR) issued 100,000 new ordinary shares of 1p each. Following this, and following the issue of the subscription shares as notified on 1 November 2016, the Company’s issued ordinary share capital will be 243,745,490 ordinary shares.
Application has been made to the London Stock Exchange for the 100,000 new ordinary shares, which rank pari passu with the Company’s existing issued ordinary shares, to be admitted to trading on AIM. Dealings are expected to commence on or around 11 November 2016.
The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 (“MAR”). Upon the publication of this announcement via Regulatory Information Service (“RIS”), this inside information is now considered to be in the public domain.
Egdon is pleased to announce the following developments:
- Subscription agreed to raise approximately £3m (gross), by the issue of 22,222,222 Ordinary Shares at 13.5p per share to HEYCO International, Inc. (“HEYCO International”), with shares expected to be admitted to trading on AIM on 11 November 2016.
- HEYCO International is an existing shareholder of Egdon and is a wholly owned subsidiary of HEYCO Energy Group, Inc., a company with significant experience in unconventional exploration and production.
- Open Offer to be made as soon as practicable to all Qualifying Shareholders to raise up to a further £2.06m (gross) by the issue of up to 15,227,843 shares at 13.5p per share.
Mark Abbott, Managing Director of Egdon, commented:
“We are delighted to have strengthened our balance sheet by securing this strategic funding from HEYCO International, an existing shareholder with extensive knowledge and experience of exploration and production of unconventional hydrocarbons. We are pleased that George Yates, the highly respected President of HEYCO International, has provided such positive support for our business model.”