“We are very grateful to our existing and new investors who have shown confidence in our business plan and growth strategy,” said chief executive Majid Shafiq
i3 Energy PLC () confirmed it has raised at least £29mln, with a further £1mln subject to regulatory approval, as it advances its proposed acquisition of assets owned by Gain Energy in Canada.
It comes after the oil and gas company last week struck a deal to concurrently sell a package of the Gain assets to a third party, Harvard Energy, for C$45mln (US$33mln) which meant the net acquisition cost was reduced to C$35mln (US$26mln).
In the share placing, some 568.4mln new shares are being issued at a price of 5p. The additional placing will see the issue of 12.65mln, if approved.
“We look forward to the completion of this placing and subscription, which will allow us to acquire our first production assets and transform the company’s future potential as we look to build a large production base in the Western Canadian Sedimentary Basin,” Majid Shafiq, i3’s chief executive said in a statement.
“We are very grateful to our existing and new investors who have shown confidence in our business plan and growth strategy. Following completion of the Gain Assets acquisition we will focus on production optimisation and cost reduction opportunities in this extensive asset base, in parallel with the ongoing execution of our strategy to rapidly grow production, targeting accretive, material, and complementary assets,” he added.
I3 noted that the transaction will deliver it diversification, adding a quality production base to generate cash. It subsequently anticipates it will pay dividends of around 20%-30% of cashflow increasing progressively up to 40%. The transaction will be executed as a reverse takeover under AIM rules.
The company’s shares are expected to resume trading today following a prior suspension.