Propell Announces $5,000,000 Strategic Equity Investment by Ervington Investments
Propell Technologies Group (OTCQB: PROP) (the “Company”) the U.S. provider of a plasma pulse based well treatment has closed the first tranche of a private financing with Ervington Investments Limited, whose ultimate beneficial owner is businessman Roman Abramovich.
The Company raised $5,000,000 from the sale of 1,525,424 shares of its Series C Preferred Stock (“Series C Preferred”) at a purchase price of $3.277777778 per share. Ervington Investments also has an option to invest an additional $9,750,000 in the Company in consideration of the issuance of an additional 2,974,576 shares of Series C Preferred. Ervington has appointed Ivan Persiyanov, an Investment Director at asset management company Millhouse LLC, as its representative to serve as a director of the Company, holding two votes of the four board votes.
Uses of proceeds include securing new tools to expand sales, R&D to further improve the plasma pulse well treatment process and strengthen the patent portfolio, repayment of all debt and accounts payable, as well as working capital.
John Huemoeller II, the Company’s President and CEO, commented: “The investment by Ervington is a strong endorsement of Propell’s innovative approach and strategy to treat oil wells by a strategic global investor with a track history of enormous success. Ervington has demonstrated its ability to grow value of its portfolio companies and we’re extremely pleased to be partnering with a group with world class value in terms of capital and strategic resources. This strategic investment should expedite our rollout plan, provide us with high level access to energy users and potential partners globally and provide the necessary funding to accomplish our goals.”
“I am pleased to join the board of Propell, a company with promising technology I believe can make an impact in the oil industry,” stated Ivan Persiyanov.
Source: Propell Technologies Group