AIM-quoted Petro Matad (LON: MATD) has seen its shares plunge on Thursday after it said it has raised gross proceeds of $9.7 million via the placing of over 200 million shares.
According to Petro Matad, the placing was oversubscribed with subscriptions by a director and shareholder of the company at a price of 3.5p.
Petrovis Matad Inc (a substantial shareholder of Petro Matad Limited) is participating in the subscription for a total of 43.3 million shares with a total value of approximately $2.1 million.
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Mike Buck, CEO of Petro Matad, is also participating in the subscription for a total of 2.06 million shares with a total value of approximately $100,000.
In the same announcement, the company also confirmed that it successfully placed 14.2 million new shares in a proposed retail offering, raising approximately $0.7 million.
A total of 214.9 million new ordinary shares will be issued by the company, representing approximately 24% of the enlarged share capital.
“The Board is delighted by the support we have received from new and existing shareholders, and is pleased to welcome a number of new blue chip institutions to the register,” commented Mike Buck, CEO of Petro Matad.
“This fundraise will allow us to commence production from the Heron Field, with the completion of the Heron 1 well and the drilling of the H2 and H3 wells,” he added.
Petro Matad’s share price has dropped 34.25% on Thursday to 3.52p.
Should you invest in Petro Matad shares?
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