Echo Energy PLC Issue of Equity (0907U)

TIDMECHO

RNS Number : 0907U

Echo Energy PLC

27 July 2020

27 July 2020

Echo Energy plc

("Echo" or "the Company")

Issue of Equity

Echo Energy, the Latin American focused upstream oil and gas company, announces the conditional placing of new ordinary shares in the Company ("Ordinary Shares") to raise gross proceeds of GBP475,000 (the "Placing").

Pursuant to the Placing Echo Energy has conditionally issued 95,000,000 new Ordinary Shares (the "Placing Shares") at a placing price of 0.5p per Placing Share, with warrants attached to the Placing Shares on a 1-for-1 basis. As a result, the Company has also conditionally issued 95,000,000 warrants to subscribe for new Ordinary Shares at a price of 1.0p per new Ordinary Share (being a 54 per cent premium to the closing mid-market price per Ordinary Share price on Friday 24 July 2020) at any time until the second anniversary of issue (the "Placing Warrants"). In addition to the Placing Warrants, the Company has also conditionally issued 5,700,000 warrants to subscribe for new Ordinary Shares at any time until the second anniversary of issue and with an exercise price of 0.8p per Ordinary Share ("Fee Warrants") in respect of fees incurred in connection with the Placing.

The Placing Shares will, when issued, rank pari passu in all respects with the existing Ordinary Shares and application will be made for the Placing Shares to be admitted to trading on AIM ("Admission"). Admission is expected to take place on or around 8.00 a.m. on 10 August 2020.

The net proceeds of the Placing of approximately GBP450,000 will strengthen the Company's cash position, will enable acceleration of prioritised activities in respect of the previously announced initial portfolio of workover and intervention operations at Santa Cruz Sur in Argentina and be applied towards the Group's general working capital requirements.

Following the issue of the Placing Shares, the Company's issued share capital will consist of 806,717,587 ordinary shares. Each share has one voting right and no shares are held in treasury; these figures may be used by shareholders in the Company as the denominator for the calculation by which they will determine if they are required to notify their interest in, or a change to their interest in, the share capital of the Company under the Financial Conduct Authority's Disclosure Guidance and Transparency Rules. Novum Securities Limited ("NSL") is acting as placing agent to the Placing and the issue of the Placing Shares, the Placing Warrants and the Fee Warrants are conditional on Admission and on a placing agreement between the Company and NSL becoming unconditional in all respects and not being terminated in accordance with its terms.

For further information, please contact:

 
Echo Energy                             via Vigo Communications 
 Martin Hull, Chief Executive Officer 
Vigo Communications (PR Advisor) 
 Patrick d'Ancona 
 Chris McMahon                             [phone] 
Cenkos Securities (Nominated Adviser) 
 Ben Jeynes 
 Katy Birkin                               [phone] 
Shore Capital (Corporate Broker) 
 Jerry Keen                                [phone] 
 

The information communicated within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain.

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July 27, 2020 02:00 ET (06:00 GMT)