Range Resources secures US$12 Million Financing
Range Resources Limited announce that it has entered into a Subscription Agreement with Abraham Ltd, a Hong Kong based private institutional investor (the “Investor”). Under the terms of the Subscription
Agreement, the Investor will subscribe US$12 million in cash and will be issued with Ordinary Fully Paid Shares of the Company (“Share” or “Shares”) at a price of £0.01 per Share (the “Subscription”), representing a premium of
approximately 49% to the mid market share price at the close of business on AIM on 14 May 2014 (being the business day immediately prior to this announcement).
At current exchange rates, the Subscription will be for approximately £7.1 million and will result in the issue of approximately 712 million Shares. The Subscription is in two tranches and the number of shares in each tranche will be dependent solely on the exchange rate between GBP and USD at the time of completion. Upon completion of the two tranche Subscription, and subject to shareholder approval, the Investor is expected to
hold approximately 15% of the enlarged share capital of the Company.
The funds will be used to repay existing debt, including convertible instruments that have diluted the Company’s equity over recent months. As announced on 30 April 2014, the Company’s total debt at that date was approximately US$10.5 million. The remainder of proceeds of the Subscription will be used for general working capital of the Company.
Commenting on today’s announcement, Rory Scott Russell, CEO, said:
“I am delighted to welcome a new strategic shareholder in the Company. The Investor is subscribing for Shares at a significant premium to the market price which demonstrates their confidence in the new management
team, the underlying quality of our assets and the newly focused strategy at Range. The US$12 million Subscription will allow us to refinance the expensive and dilutionary corporate debt and provide working capital as we now move forward with Range’s operational and long term financing objectives,particularly in Trinidad.”
Source: Range Resources