Union Jack Oil plc has raised £2 million before expenses through a placing and subscription of an aggregate 40 million new ordinary shares of five pence each, at five pence per new ordinary share.
DIRECTORS
Each placing and subscription share has one warrant attached, exercisable at eight pence for a period of two years, equal to a total of 40m warrants.
Union Jack has used its existing authorities to issue the new ordinary shares, while issue of the warrants is subject to shareholder approval at a general meeting.
The placing is with certain institutional and other investors for 32m new ordinary shares and conditionally raises £1.61m.
The subscription for 7.8m new ordinary shares conditionally raises approximately £390,000.
The total fundraise shares will represent approximately 27% of Union Jack’s enlarged share capital, excluding shares held in treasury.
The company’s directors and a person discharging managerial responsibilities also took part in the subscription.
Executive chairman David Bramill and executive director Joseph O’Farrell each subscribed for 300,000 shares for £15,000, taking their holdings to 716,646 and 2,331,314 shares, respectively.
Non-executive director Craig Howie subscribed for three million shares for £150,000 and company secretary Matt Small subscribed for 200,000 shares for £10,000.
Following admission, the company’s share capital will comprise 152,865,896 ordinary shares.
Union Jack holds 6,300,000 shares in treasury, therefore the total voting rights will be 146,565,896.
Net proceeds will progress a US$3m drilling programme for the three wells of Sark and Wolverine-1 in central Oklahoma and Crossroads in southern Oklahoma, USA.