The Predator Oil & Gas Holdings PLC (LON: PRD) share price plunged 23.33% after raising £2,000,000 via a discounted share placement where it placed 15,500,000 new ordinary shares and borrowed 20,863,636 existing ordinary shares from company director Paul Griffiths.
YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.
The plunge in Predator Oil shares was expected, given the discount offered to the new investors who bought their shares at a discounted price of 5.5p. The company borrowed shares from Paul Griffiths because it did not have enough headroom to issue the 36,363,636 placing shares to complete the transaction.
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YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY
Instead, the company confirmed that it would use most of the funds raised to start and complete a drilling program of up to 1,500 metres at its MOU-3 well, where its primary target is the Moulouya Fan belt accompanied by the shallow gas target identified in the Competent Persons Report issued by SLR Consulting Ireland Ltd. in March 2019.
Predator Oil & Gas will complete the share placement using the borrowed shares on time by 3 April 2023. The borrowed shares will attract an interest payment of 4% above SONIA of the principal sum lent of £1,147,500, the market value of 20,863,636 shares at the Placing Price.
Any of the shares that are not returned by the due date will attract a 12% annual interest.
Paul Griffiths, Predator Oil & Gas Holdings Executive Chairman, commented: “The additional funding announced today allows us to advance the drilling of MOU-3 to target for the first time all Prospective and Contingent gas resources. The learning curve has improved substantially following the information gathered from the suspended well MOU-2. As a result, we believe that bringing forward the drilling of MOU-3, with a projected start date in the first week of May, is a sensible course of action. I am delighted to be supporting the Company and its shareholders through a loan of shares to enable MOU-3 to proceed earlier than originally envisaged based on attractive risk versus reward metrics.”
*This is not investment advice.
Predator Oil & Gas (PRD) share price.
The Predator Oil & Gas (PRD) share price plunged 23.33% to trade at 5.75p from Thursday’s closing price of 7.50p.
YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.