Reabold Resources PLC Placing to raise £2.65 million (1198E)

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RNS Number : 1198E

Reabold Resources PLC

02 July 2019

2 July 2019

Reabold Resources Plc

("Reabold" or the "Company")

Placing to raise GBP2.65 million

Reabold, the AIM investing company which focusses on investments in pre-cash flow upstream oil and gas projects, is pleased to announce that is has raised GBP2.65 million (gross) via a placing of 240,909,091 new ordinary shares of 0.1 pence each ("Ordinary Shares") (the "Placing Shares") at a price of 1.10 pence per new Ordinary Share (the "Issue Price") (the "Placing"). The Company primarily intends to use the proceeds of the Placing for further strategic investment into its current portfolio and potentially into further investment opportunities.

Highlights of the Placing:

-- GBP2.65 million raised with new and existing institutional shareholders to be deployed into the Company's portfolio of opportunities;

-- Issue Price is a 29 per cent. premium to both the price at which the Company last raised funds (being 0.85 pence) and the 90-day volume weighted average price (being 0.855 pence); and

-- Issue Price is equal to the closing mid-market price of the Company's Ordinary Shares on AIM on 1 July 2019, being the latest practicable date prior to this announcement.

Further information on the Placing

The Placing Shares will rank pari passu with the existing Ordinary Shares in issue. The Placing Shares, on admission to trading on AIM, will represent 5.9 per cent. of the Company's then enlarged share capital. Whitman Howard Limited acted as sole broker and bookrunner in relation to the Placing.

The Placing is being carried out utilising the Company's current authority to issue shares for cash on a non-pre-emptive basis. Application will be made to the London Stock Exchange for admission of the Placing Shares to trading on AIM ("Admission"). It is expected that Admission will become effective and dealings in the Placing Shares will commence at 08:00 on 5 July 2019.

Following Admission, the Company will have a total of 4,063,963,810 Ordinary Shares in issue carrying voting rights. The Company does not hold any Ordinary Shares in treasury. Therefore, with effect from Admission, this figure may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the Company, under the Financial Conduct Authority's Disclosure Guidance and Transparency Rules.

Stephen Williams, Co-Chief Executive Officer of Reabold commented:

"In less than a year, Reabold has taken part in seven high-impact wells, the most recent of which being the potentially transformative West Newton A-2 appraisal well. We are delighted by this progress and, considering the potential of our existing portfolio, we now intend to invest further into these companies to facilitate further drilling activity.

"We are also delighted to have completed the Placing at a 29 per cent. premium to our last fundraise and with minimal dilution to existing shareholders. We would like to welcome our new investors in the Company and thank our existing investors for their continued support."

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.

ENDS

For further information please contact:

 
 Reabold Resources plc                             c/o Camarco 
  Stephen Williams                                  [phone] 
  Sachin Oza 
 Whitman Howard Limited (Sole Broker and 
  Bookrunner for the Placing and Joint Broker 
  to the Company) 
  Hugh Rich 
  Nick Lovering 
 Strand Hanson Limited (Nominated and Financial 
  Adviser) 
  Rory Murphy 
  James Spinney 
  James Dance                                       [phone] 
 Turner Pope Investments (TPI) Ltd (Joint 
  Broker to the Company) 
  Andy Thacker                                     [phone] 
 Camarco 
  James Crothers 
  Ollie Head 
  Billy Clegg                                      [phone] 
 

Notes to Editors

Reabold Resources plc is an investing company investing in the exploration and production ("E&P") sector. The Company's investing policy is to acquire direct and indirect interests in exploration and producing projects and assets in the natural resources sector, and consideration is currently given to investment opportunities anywhere in the world.

As an investor in upstream oil & gas projects, Reabold aims 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.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [e-mail] or visit www.rns.com.

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July 02, 2019 02:00 ET (06:00 GMT)