LONDON - United Oil & Gas PLC (AIM: UOG), an oil and gas company with assets in Jamaica and the UK, has announced its intention to raise approximately £0.7 million before expenses. The capital raise will be conducted through a conditional placing of new ordinary shares at an issue price of GBP£0.0010 each, along with accompanying warrants.
The placing shares will be offered via an accelerated Bookbuild process managed by Tennyson and Shard, acting as joint bookrunners. The Bookbuild is set to open immediately following the announcement and will close at the discretion of the bookrunners and the company. The number of placing shares to be issued and their allocation will be confirmed after the Bookbuild's closure.
United Oil & Gas plans to use the proceeds from the placing for general working capital, advancing the Jamaican farmout process, and paying historical trade creditors. The company also acknowledged the dilution effect of this fundraising, following an earlier raise at GBP£0.0020 in 2024, citing challenging market conditions and the need to strengthen its financial position.
In conjunction with the placing, the company announced that Chairman Graham Martin will step down post the General Meeting in January 2025. The board is currently identifying a suitable successor.
Furthermore, United has resolved to extend the expiry date of certain warrants with an exercise price of GBP£0.0028 per share, which were originally set to expire on 31 December 2024. The new expiry date is extended to 30 June 2025.
United's CEO, Brian Larkin, commented on the fundraising as a pivotal moment for the company, enabling it to fulfill work programme obligations in Jamaica and strengthen its farmout efforts.
The placing shares are expected to be admitted to trading on AIM no later than 20 December 2024, with a general meeting scheduled around 8 January 2025 to seek shareholder authorities to allot and issue the balance of the placing shares. Admission of the second tranche of placing shares is expected to commence on 09 January 2025.
It is important to note that this announcement is based on a press release statement and is intended for information purposes only. The securities discussed have not been registered under the U.S. Securities Act of 1933 and are not offered or sold in the United States unless registered or exempt from registration.
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