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- Metgasco’s (MEL) entitlement offer is now open to shareholders, as the company seeks to raise an additional $4.58 million in funds
- The full underwritten offer will see MEL shareholders offered one new share for every three already held, with new shares worth 2.5 cents each
- One new attaching option will also be issued for every three new shares issued, with a scratch price of 3.1 cents and an expiry date of December 2022
- MEL says the funds from the offer will be spent on advancing and commercializing the company’s Cooper Basin assets
- Metgasco shares closed on Wednesday at 2.8 cents each
Metgasco’s (MEL) entitlement offer is now open to shareholders, as the company seeks to raise an additional $4.58 million in funds.
The oil and gas company released the entitlement offer booklet to shareholders today, after announcing it would raise more cash earlier this month.
Under the fully underwritten, non-renounceable, pro-rata offer, shareholders will be offered one new share for every three MEL shares already held.
Each new share is worth 2.5 cents, and for every three new shares issued MEL will issue one attaching option.
These options have an exercise price of 3.1 cents and are due to expire on December 31, 2022, while the wider offer will close on July 28.
The company plans to use the majority of the funds raised via the entitlement offer on advancing and commercialising its Cooper Basin assets.
This includes appraisal, well completion, well testing, geophysics activities as well as pipeline and service infrastructure.
Metgasco shares have ended Wednesday’s trading session at 2.8 cents per share.
