Reabold Resources PLC Result of the Placing (3023G)

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RNS Number : 3023G

Reabold Resources PLC

28 February 2018

THIS ANNOUNCEMENT AND THE INFORMATION CONTAINED HEREIN IS RESTRICTED AND IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN, INTO OR FROM THE UNITED STATES, AUSTRALIA, CANADA, JAPAN, THE REPUBLIC OF IRELAND, THE REPUBLIC OF SOUTH AFRICA OR ANY OTHER JURISDICTION IN WHICH SUCH RELEASE, PUBLICATION OR DISTRIBUTION WOULD BE UNLAWFUL.

THIS ANNOUNCEMENT IS FOR INFORMATION PURPOSES ONLY AND DOES NOT CONSTITUTE OR CONTAIN ANY INVITATION, SOLICITATION, RECOMMENDATION, OFFER OR ADVICE TO ANY PERSON TO SUBSCRIBE FOR, OTHERWISE ACQUIRE OR DISPOSE OF ANY SECURITIES IN REABOLD RESOURCES PLC OR ANY OTHER ENTITY IN ANY JURISDICTION. NEITHER THIS ANNOUNCEMENT NOR THE FACT OF ITS DISTRIBUTION SHALL FORM THE BASIS OF, OR BE RELIED ON IN CONNECTION WITH, ANY INVESTMENT DECISION IN RESPECT OF REABOLD RESOURCES PLC.

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF THE MARKET ABUSE REGULATION (596/2014/EU). IN ADDITION, MARKET SOUNDINGS (AS DEFINED IN MAR) WERE TAKEN IN RESPECT OF CERTAIN OF THE MATTERS CONTAINED IN THIS ANNOUNCEMENT, WITH THE RESULT THAT CERTAIN PERSONS BECAME AWARE OF SUCH INSIDE INFORMATION, AS PERMITTED BY MAR. UPON THE PUBLICATION OF THIS ANNOUNCEMENT THIS INSIDE INFORMATION IS NOW CONSIDERED TO BE IN THE PUBLIC DOMAIN AND SUCH PERSONS SHALL THEREFORE CEASE TO BE IN POSSESSION OF INSIDE INFORMATION.

For immediate release

28 February 2018

Reabold Resources plc

("Reabold" or the "Company")

Result of the placing ("Placing")

Further to the announcement made at 11.30 a.m. today (the "Placing Announcement") the Board of Reabold (AIM: RBD), the AIM traded investment company investing in the Exploration & Production sector, announce that, the bookbuild has been successful and is now closed.

Due to demand received during the bookbuild, the Board of Reabold has decided to increase the placing from 1,222,000,000, new ordinary shares of 0.1p each in the capital of the Company ("Ordinary Shares") to 1,305,083,333 new Ordinary Shares (the "New Placing Shares"), an increase of 7%.The New Placing Shares have been successfully placed by the Joint Brokers with new and existing shareholders of the Company at a price of 0.6 pence per New Placing Share (the "Issue Price"). to raise approximately GBP7.83 million (before expenses).

Stephen Williams, Co-CEO of Reabold, commented:

"We are delighted by the result of today's placing which is at a 20% premium to the capital per share at which we raised money in 2017. The institutionally led placing was well supported by existing shareholders and we are delighted to welcome new high-quality institutions welcomed to the Reabold share register."

Sachin Oza, Co-CEO of Reabold, commented:

"Today's placing allows Reabold to accelerate the execution of its strategy of funding high quality oil & gas projects. We are confident that Reabold's funding of near term drilling activity, enhanced by subsequent involvement of additional industry participants, will create substantial value for Reabold shareholders. We look forward to deploying the proceeds from the Placing to generate a unique portfolio of increased near term activity, high impact and value creative projects."

The Placing and settlement

The Issue Price represents a premium of approximately 4 per cent. to the closing middle market price of 0.575 pence per existing Ordinary Share on 27 February 2018, the last business day before the announcement of the Placing.

The New Placing Shares will, when issued, represent 85% of the existing Ordinary Shares prior to the issue of the New Placing Shares and 46% of the enlarged issued share capital following the Placing and will be fully paid and will rank pari passu in all respects with the existing Ordinary Shares, including the right to receive all dividends and other distributions declared, made or paid after the date of issue.

Application will be made for the Placing Shares to be admitted to trading on the AIM market of the London Stock Exchange plc ("AIM").

Settlement for the Placing Shares and admission of the Placing Shares to trading on AIM ("Admission") is expected to take place on 8.00 a.m. on 20 March 2018. The Placing is conditional, among other things, upon Resolutions 1 and 2 being duly passed at the General Meeting, Admission becoming effective and the Placing Agreement not being terminated in accordance with its terms.

The general meeting ("General Meeting"), is to be held at the offices of Hill Dickinson LLP, 105 Jermyn Street, London SW1Y 6EE at 11.00 am on 19 March 2018, notice of which will be posted to shareholders of the Company. The Resolutions to be proposed at the General Meeting are to provide the Company with the authority to issue and allot the Placing Shares and to create headroom for the Company to issue further 284,549,923 ordinary shares. Whilst the Directors have no current plans to utilise such additional headroom it will allow them to react quickly and cost effectively to any future opportunities that may arise. If such authority were to be granted it would represent 10% of the enlarged issued share capital of the Company following the Placing.

A copy of a Circular, which includes notice of the General Meeting, will be posted to the shareholders of the Company and will be available from the Company's website: www.reabold.com

Total voting rights

Following the issue of the Placing Shares and assuming the passing of the Resolutions at the General Meeting, the Company will have 2,845,499,229 Ordinary Shares in issue.

Enquiries:

 
                                          020 7440 
 Reabold Resources plc                     640 
 Sachin Oza, Co-Chief Executive 
 Stephen Williams, Co-Chief Executive 
 
   Arden Partners plc (Joint Broker         020 7614 
   and bookrunner)                          5900 
 Paul Shackleton / Daniel Gee-Summons 
  - Corporate Finance 
 Fraser Marshall - Corporate Broking 
 
   Whitman Howard Limited (Joint            020 7659 
   Broker)                                  1234 
 Nick Lovering 
 Grant Barker 
 
   Beaumont Cornish Limited (Nominated      020 7628 
   Advisers)                                3396 
 Roland Cornish 
 Felicity Geidt 
 

Notes to Editors

Reabold is an investor in upstream oil & gas projects with an aim to create value from each project by investing in undervalued, low-risk, near-term upstream oil & gas projects and by identifying a clear exit plan prior to investment.

Reabold's long term strategy is to re-invest capital made through its investments into larger projects in order to grow the Company. Reabold aims to gain exposure to assets with limited downside and high potential upside, capitalising on the value created between the entry stage and exit point of its projects. The Company invests in projects that have limited correlation to the oil price.

Reabold has a highly-experienced management team, who possess the necessary background, knowledge and contacts to carry out the Company's strategy. Management believes the current distress in the oil & gas industry presents an opportune time to deploy capital in undervalued assets with huge potential.

This information is provided by RNS

The company news service from the London Stock Exchange

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February 28, 2018 12:11 ET (17:11 GMT)