Business
Placing to Raise £1 million
Placing to Raise £1 million.
About this update from Caspian Sunrise Plc
[{"type":"text","content":"\n \n \n RNS Number : 2883V\n Caspian Sunrise plc\n 06 August 2020\n \n \n \n \n THIS ANNOUNCEMENT, INCLUDING THE APPENDIX TO THIS ANNOUNCEMENT, AND THE INFORMATION CONTAINED HEREIN IS RESTRICTED AND IS\n NOT FOR\n RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES, AUSTRALIA, CANADA, JAPAN, NEW ZEALAND, SOUTH AFRICA OR ANY OTHER JURISDICTION IN WHICH SUCH RELEASE, PUBLICATION OR DISTRIBUTION WOULD BE UNLAWFUL.\n \n \n THIS ANNOUNCEMENT, INCLUDING THE APPENDIX TO THIS ANNOUNCEMENT, IS FOR INFORMATION PURPOSES ONLY AND DOES NOT ITSELF CONSTITUTE AN OFFER FOR SALE OR SUBSCRIPTION OF ANY SECURITIES IN THE COMPANY. THIS ANNOUNCEMENT AND THE APPENDIX DOES NOT CONSTITUTE OR CONTAIN ANY INVITATION, SOLICITATION, RECOMMENDATION, OFFER OR ADVICE TO ANY PERSON TO SUBSCRIBE FOR, OTHERWISE ACQUIRE OR DISPOSE OF ANY SECURITIES OF CASPIAN SUNRISE PLC IN ANY JURISDICTION IN WHICH ANY SUCH OFFER OR SOLICITATION WOULD BE UNLAWFUL.\n \n Caspian Sunrise PLC\n \n (\"Caspian Sunrise\" or the \"Company\")\n \n \n \n \n Placing to Raise £1million\n \n \n Introduction\n \n Caspian Sunrise, the Central Asian oil and gas company with a focus on Kazakhstan, is pleased to announce that it has raised £1 million through the placing (\"Placing\") of 36,363,629 new ordinary shares (\"Placing Shares\") in the capital of the Company to new and existing investors at an issue price of 2.75 pence per share (\"Placing Price\"), representing approximately 16.2% discount to closing mid-price on 4 August 2020.\n \n Background and use of proceeds\n \n As set out more fully in the Company's 2019 Financial Statements, the combined impact of an already tight working capital position following the switch up to export status at the MJF structure in 2019, and the impact of the measures taken to combat the Covid-19 virus, had an inevitable impact on short term cashflows resulting in an abnormal build-up of trade creditors.\n \n The funds raised by this small placing for cash, only the Company's second since our IPO in 2007, allows the trade creditor position to be brought into balance and we do not expect to need to raise similar funding for at least the rest of the current financial year and probably not at all.\n \n The new funding also helps a...