Business
Institutional Cornerstone Investment and Placing
Institutional Cornerstone Investment and Placing.
About this update from Coro Energy Plc
[{"type":"text","content":"\n \nRNS Number : 5806C Saffron Energy PLC 22 January 2018 \n\nTHIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION\n \n22 January 2018\nSaffron Energy Plc\n(\"Saffron Energy\" or the \"Company\")\n \n \nInstitutional Cornerstone Investment\n & Oversubscribed Placing \n \nSaffron Energy Plc (LON:SRON), the AIM quoted European gas company, which is transforming into a Pan Euro-Asian Gas Explorer and, subject to shareholder approval, being renamed Coro Energy Plc, is pleased to confirm the results of its book build following, and in support of, the proposed transaction and new international growth strategy as announced earlier today (the \"Previous Announcement\").\n \nThe Company is delighted to confirm it has received signed binding conditional commitments applying for in excess of the maximum £14,000,000 gross proceeds it is raising. It is anticipated that the funds, which will amount to approximately £13.7 million net of cash commissions, will be deployed in the Company's new strategy, primarily to evaluate, drill and develop any acquired assets.\n \nThe Company has placed 319,634,703 new Saffron Energy ordinary shares of 0.1p per share (\"Ordinary Shares\") to new institutional and other investors at a price of 4.38 pence per new Ordinary Share; the issue of 306,823,339 such Ordinary Shares is conditional on shareholder approval. Under the proposed equity fundraising, and subject to shareholder approval, investors will be granted warrants (\"Warrants\") to subscribe for additional Ordinary Shares at a price of 6.57 pence, being 150 per cent. of the placing price on the basis of one Warrant for every two Ordinary Shares subscribed. The Warrants vest, subject to shareholder approval, upon issue of the Ordinary Shares and are exercisable for one year from the date of issue.\n \nThe fundraising will include a £6 million subscription by the Company's new cornerstone investor, CIP Merchant Capital Ltd, via a subsidiary (\"CIP\"). CIP will subscribe immediately for 12,811,364 Ordinary Shares (\"Firm Subscription Shares\") to raise gross proceeds of £561,137.74 under the Company's existing authorities, and will subscribe for a further 124,174,937 Ordinary Shares (the \"Conditional Subscription Shares\"), alongside other investors, subject to approval by shareholde...