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Subscription and Placing to Raise up to £12.6m & Proposed Board Changes

Source: www.gulfoilandgas.com 3/6/2019, Location: Africa

Victoria Oil & Gas Plc, the integrated natural gas producing utility company in Cameroon, is pleased to announce a £12.6 million (c.US$16.5 million) equity fundraise.

Highlights:
- Binding conditional direct share subscription by YF Finance Limited to raise £6.5 million.
- Proposed Placing to raise up to £6.1 million.
- Fundraising to be conducted at an issue price of 13 pence per share.
- The Placing is being conducted by way of an accelerated book build process which will open with immediate effect following this announcement.
- On completion of the Fundraising, Kevin Foo will retire as Director and Executive Chairman.
- Roger Kennedy, currently Senior Non-Executive Director, will assume the role of Executive Chairman.
- Two additional independent non-executive directors will be appointed to the Board.

Fundraising Details:

The Company has entered into a conditional agreement for a subscription of 50,000,000 new Ordinary Shares, at an issue price of 13 pence per share (the "Issue Price"), by YF Finance Limited ("YF Finance" or the "Subscriber") to raise £6.5 million, before expenses (the "Subscription"). YF Finance is the Company's largest shareholder and is currently interested in 11,085,239 ordinary shares, representing approximately 7.37 per cent. of the Company's existing issued share capital. YF Finance is wholly owned by Mr Askar Alshinbayev and has investments in several other international oil & gas companies.

In addition, the Company is seeking to raise an additional £6.1 million, before expenses, by way of a proposed placing to certain new and existing institutional and sophisticated investors via its joint brokers, Shore Capital Stockbrokers Limited ("Shore Capital") and FirstEnergy Capital LLP ("GMP FirstEnergy"), at the Issue Price (the "Placing"). The maximum targeted amount for the fundraising, comprising the Subscription and the Placing, is approximately £12.6 million (approximately US$16.5 million) (the "Fundraising"). The Subscription is not conditional on any minimum amount being raised in the Placing.

The Placing is being conducted as an accelerated book build process which will open with immediate effect following this announcement.

The Fundraising is subject to the requisite shareholder approval and, accordingly, the issue of the New Ordinary Shares is conditional on, inter alia, the passing of certain resolutions by Shareholders (the "Resolutions") at a duly convened general meeting of the Company (the "General Meeting"), notice of which, together with full details of the Fundraising, will be set out in the circular to be posted to Shareholders shortly.

Ahmet Dik, CEO of VOG, commented:
"This morning's announcement to raise up to £12.6 million in conjunction with the proposed Board changes is a new beginning for VOG. The Fundraising will strengthen the Company's financial position and provide the necessary support for the new Board and Senior Management to take the Company to the next level. Given the gas demand in the industrial city of Douala Cameroon, and the Company's strategic position of being the only onshore gas supplier and operator of the gas pipeline network, the Company can now look to develop its Matanda project and optimise its Logbaba operations with a view to becoming cashflow positive in the near term.

"Finally, a reduction of director salaries, which I welcome, is evidence of the new Board's focus to drive the Company to ensure Shareholder returns."

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Related Categories: Accounting, Statistics  Acquisitions and Divestitures  Asset Portfolio Management  Economics/Financial Analysis  General  Industrial Development  Insurance  Investment  Mergers and Acquisitions  Risk Management 

Related Articles: Accounting, Statistics  Acquisitions and Divestitures  Asset Portfolio Management  Economics/Financial Analysis  General  Insurance  Investment  Mergers and Acquisitions  Risk Management 


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