- Shares in oil and gas explorer Vintage Energy (VEN) were frozen today ahead of a capital raise
- While the structure of the raise is currently unclear, shareholders should get more details about the venture on or by Thursday, September 17
- Vintage’s last capital raise, conducted over April and May, brought in $3 million — $2.25 million from a placement and $0.75 million from a share purchase plan (SPP)
- Over the June quarter, however, the company went cashflow-negative by over $750,000, with the bulk of its cash chewed up by staff, admin and corporate costs
- At the end of June, Vintage had just over $3.4 million in the bank — enough to last for just under two quarters if current spending levels stay the same
- Vintage shares last traded for seven cents each on September 14
Shares in oil and gas explorer Vintage Energy (VEN) were frozen today ahead of a capital raise.
The energy small-cap entered the trading halt before market open this morning as it prepares to tap investors for fresh capital.
While the structure of the raise is currently unclear, shareholders should get more details about the venture on or by Thursday, September 17.
At that stage, Vintage Energy shares will resume trading on the ASX.
Vintage’s last capital raise, conducted over April and May, brought in $3 million — $2.25 million from a placement and $0.75 million from a share purchase plan (SPP).
Funding from that venture supported fracture stimulation and flow testing at Vintage’s Vali-1 ST1 gas discovery. At this stage, however, it’s unclear how VEN will spend the proceeds from this latest capital raise.
The company’s most recent financial update was its quarterly report, released on July 31.
Over the June quarter, the company went cashflow-negative by over $750,000, with the bulk of its cash chewed up by staff, admin and corporate costs. All up, Vintage’s outgoings for the period came to just over $1.8 million.
At the end of June, Vintage had just over $3.4 million in the bank — enough to last for just under two quarters if current spending levels stay the same.
As a result, news of a fresh capital raise may not be much of a surprise to those with a holding in the energy stock.
Vintage shares last traded for seven cents each on September 14.