London-based Mustang Energy’s (LON: MUST) share price has gained over 29% on Friday after the company said it raised £167,160 in a share placing.
Mustang’s share price is trading 29% higher heading into the London close, priced at 24p per share.
The placing proceeds are to provide additional working capital for the company and allow it to have sufficient cash resources to undertake due diligence on future potential acquisitions.
Mustang said the placing of 1.67 million new ordinary shares at 10p per share was with Acacia Resources Limited.
Acacia, a company focused on minerals involved in the energy transition process, also purchased 800,000 shares from two shareholders of the company on an off-market basis, representing approximately 7.78% of the company's enlarged share capital. Acacia now holds a 24.03% stake in Mustang.
There is an option for Acacia to purchase a further 1.67 million shares at 18p at any time over the next 12 months.
Additionally, the group can appoint one director to the Mustang board as long as it owns no less than 10% of the company.
“We are delighted to welcome Acacia as a strategic investor in Mustang Energy. Their experience in the energy transition, energy storage and renewable energy markets is significant,” commented Dean Gallegos, Managing Director of Mustang Energy.