REG - Petro Matad Ltd - Results of Capital Raise

Petro MatadAnnouncement

26/06/2024 07:00

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RNS Number : 8673T  Petro Matad Limited  26 June 2024

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OR ANY OTHER JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A BREACH OF THE
RELEVANT SECURITIES LAWS OF SUCH JURISDICTION.

This Announcement does not constitute a prospectus or offering memorandum or
an offer in respect of any securities and is not intended to provide the basis
for any investment decision in respect of Petro Matad Limited or other
evaluation of any securities of Petro Matad Limited or any other entity and
should not be considered as a recommendation that any investor should
subscribe for or purchase any such securities.

This Announcement contains inside information for the purposes of the UK
version of the market abuse regulation (EU No. 596/2014) as it forms part of
United Kingdom domestic law by virtue of the European Union (Withdrawal) Act
2018 ("UK MAR").  In addition, market soundings (as defined in UK 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 UK 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

 

26 June 2024

Petro Matad Limited

("Petro Matad" or the "Company")

Results of Oversubscribed Placing and Subscription

 

Petro Matad Limited ("Petro Matad" or the "Company") (AIM: MATD), the AIM
quoted Mongolian oil company, is pleased to announce that following the
accelerated bookbuild which was announced on 25 June 2024, the Company has
conditionally raised gross proceeds of GBP 7.0 million (US$8.9 million)
through the Placing of new Ordinary Shares, and Subscription by each of a
director and shareholder of the Company at a price of 2.0 pence (the "Placing
Price") per share.

 

Shore Capital Stockbrokers ("Shore Capital") and Zeus Capital ("Zeus") acted
as Joint Bookrunners.

 

Capitalised terms used in this announcement (this "Announcement") have the
meanings given to them in the launch announcement, unless the context provides
otherwise.

 

 

Highlights

 

·    The Company has conditionally raised, in aggregate, GBP 7.0 million
(US$8.9 million) at a price of 2.0 pence per new Ordinary Share.

·    Petrovis Matad Inc. (a Substantial Shareholder as defined under the
AIM Rules) is participating in the Subscription for a total of 39,370,077
Subscription Shares with a total value of US$1 million.

·    Mike Buck, CEO of Petro Matad, is participating in the Subscription
for a total of 3,937,007 Subscription Shares with a total value of US$100,000.

·    Conditionally, in aggregate, a total of 350,000,000 New Shares will
therefore be issued, representing approximately 24 per cent. of the enlarged
share capital.

 

Retail Offer

As part of the Capital Raising, the Company announced on 25 June 2024 that it
was launching a separate retail offer of up to 20 million new Ordinary Shares
at the Placing Price on the BookBuild Platform to raise up to a further
£400,000 (US$0.5m) to provide existing retail shareholders in the United
Kingdom with an opportunity to participate in the Capital Raising. A separate
announcement will be made on the result of the Retail Offer, expected to be
released on 1 July 2024.

 

Admission

Application will be made for the admission of the Placing Shares to trading on
the AIM market of London Stock Exchange plc ("Admission"). It is ‎expected
that such Admission will take place at or around 8.00 a.m. (London time) on 1
July 2024. Application will be made for the admission of the Subscription
Shares to trading on the AIM market of London Stock Exchange plc. It is
‎expected that such admission will take place at or around 8.00 a.m. (London
time) on 3 July 2024.

 

Related Party Transaction

 

As a substantial shareholder, Petrovis Matad Inc.'s participation in the
Subscription is deemed to be a related party transaction for the purposes of
AIM Rule 13. The independent director of Petro Matad (being for this purpose
Tim Bushell), having consulted with the Company's nominated adviser, Shore
Capital, considers that the terms of Petrovis Matad Inc.'s participation in
the Subscription are fair and reasonable insofar as Shareholders are
concerned.

 

As a director, Mike Buck's intended participation in the Subscription is
deemed to be a related party transaction for the purposes of AIM Rule 13. The
independent Director of Petro Matad (being for this purpose Tim Bushell),
having consulted with the Company's nominated adviser, Shore Capital,
considers that the terms of his participation in the Subscription are fair and
reasonable insofar as Shareholders are concerned.

 

 

Enquiries:

 Petro Matad Limited                                                       +976 7014 1099

 Mike Buck, Chief Executive Officer

 Shore Capital Stockbrokers Limited (NOMAD, Broker, Joint Bookrunner)      +44 207 408 4050

 Toby Gibbs / Rachel Goldstein
 Zeus Capital Limited (Joint Bookrunner)                                   +44 207 614 5900

 Simon Johnson / Louisa Waddell

 FTI Consulting (Financial PR)        +44 203 727 1000

 Ben Brewerton / Christopher Laing    petromatad@fticonsulting.com (mailto:petromatad@fticonsulting.com)

About Petro Matad

Petro Matad is the parent company of a group focussed on oil exploration, as
well as future development and production in Mongolia. At the current time,
Petro Matad holds 100% working interest and the operatorship of two Production
Sharing Contracts with the Government of Mongolia. Block XX has an area of 214
square kilometres in the far eastern part of the country and Block V has an
area of 7,937 square kilometres in the central western part of the country.

Petro Matad Limited is incorporated in the Isle of Man under company number
1483V. Its registered office is at Victory House, Prospect Hill, Douglas, Isle
of Man, IM1 1EQ.

Market Abuse Regulation

This Announcement is released by Petro Matad Limited and contains inside
information for the purposes of UK MAR and is disclosed in accordance with the
Company's obligations under UK MAR. The person who arranged for the release of
this Announcement on behalf of Petro Matad Limited was Mike Buck, Chief
Executive Officer.

Important Notices

Shore Capital is a member of the London Stock Exchange and is authorised and
regulated in the United Kingdom by the Financial Conduct Authority (the "FCA")
and Zeus is regulated in the United Kingdom by the FCA. Each of Shore Capital
and Zeus is acting exclusively for the Company and no one else in connection
with the Placing, and Shore Capital and Zeus will each not be responsible to
anyone (including any Placees) other than the Company for providing the
protections afforded to its clients or for providing advice in relation to the
Placing or any other matters referred to in this Announcement.

The notification below, made in accordance with the requirements of UK MAR,
provides further details of above transactions.

 

 1    Details of the person discharging managerial responsibilities / person closely

    associated

 a)   Name                                                         Mike Buck

 2    Reason for the notification

 a)   Position/status                                              CEO

 b)   Initial notification /Amendment                              Initial notification

 3    Details of the issuer, emission allowance market participant, auction

    platform, auctioneer or auction monitor

 a)   Name                                                         Petro Matad Limited

 b)   LEI                                                          213800FXLBLLEVK4R858

 4    Details of the transaction(s): section to be repeated for (i) each type of

    instrument; (ii) each type of transaction; (iii) each date; and (iv) each
      place where transactions have been conducted

 a)   Description of the financial instrument, type of instrument  Ordinary shares in the Company

      Identification code

                                                                   IM00B292WR19
 b)   Nature of the transaction                                    Purchase of shares

 c)   Price(s) and volume(s)                                       Purchase of shares:

Price  Volume(s)

                                                                   2.0p   3,937,007

 

 d)   Aggregated information

      - Aggregated volume                                          N/A

      - Price

      - Total Value

 e)   Date of the transaction                                      26 June 2024

 f)   Place of the transaction                                     LSE, AIM Market (AIMX)

 

 

d)

 

Aggregated information

 

- Aggregated volume

 

- Price

 

- Total Value

 

 

 

N/A

e)

 

Date of the transaction

 

 

26 June 2024

f)

 

Place of the transaction

 

 

LSE, AIM Market (AIMX)

 

 

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