Energy company based in Ireland Providence Resources announced its intention to conditionally raise up to $1.8 million before expenses on Friday, to meet its short-term working capital needs.
The AIM-listed company said the funds would be raised through the issue of placement and subscription securities, each consisting of one new share and a 1.5 pence warrant, at a price of 1 .5 pence each.
He said the fundraising would include placement with institutional and other investors, and subscription by certain investors.
The price represented a 35% discount to the company’s closing price on June 16.
“The fundraising is necessary to meet the company’s short-term working capital needs as well as to pursue its lease commitment application for Barryroe,” the board said in its statement.
“Providence continues to press the Irish Department for Environment, Climate and Communities (DECC) to consent to its Barryroe lease commitment application.
“In addition, a portion of the proceeds will be used to advance the preparation of an appraisal well in 2023, subject to the award of the lease commitment.”
At 12:58 BST, shares of Providence Resources were down 26.09% to 1.7p.
Reporting by Josh White on Sharecast.com.
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