Business
Eco (Atlantic) Oil and Gas Ltd. Announces Subscription to raise 6.1m CAD (US$4.9m)
TORONTO, ON / ACCESSWIRE / June 28, 2021 / Eco (Atlantic) Oil & Gas Ltd. (AIM:ECO, TSX&#x...
About this update from Eco (atlantic) Oil & Gas Ltd.
[{"type":"text","content":"Eco (Atlantic) Oil and Gas Ltd. Announces Subscription to raise 6.1m CAD (US$4.9m)TORONTO, ON / ACCESSWIRE / June 28, 2021 / Eco (Atlantic) Oil & Gas Ltd. (AIM:ECO, TSX‐V:EOG), an oil and gas exploration company with licences in the proven oil province of Guyana and the highly prospective basins of Namibia, is pleased to announce, further to its announcement earlier today, that it has completed, subject to TSX Venture Exchange approval, a private placement with strategic partner Africa Oil Corp. ('Africa Oil') and Charlestown Energy Partners LLC ('Charlestown Energy'), a Private Equity firm based in New York, USA, to raise approximately 6.1m CAD (the 'Subscription').Africa Oil has subscribed for 5,945,913 new common shares in Eco at a price of 0.41 CAD per new common share (the 'Subscription Price') and will be granted the same number of warrants to acquire common shares at the Subscription Price with a two-year duration. Charlestown Energy has also subscribed for 9,000,000 new common shares at the Subscription Price and will be issued the same number of warrants on equivalent terms. The Subscription by Africa Oil and Charlestown Energy will result in Africa Oil increasing its interest in Eco to 19.99%, and Charlestown Energy increasing its interest to 4.51%, of the issued share capital of Eco as enlarged by the Subscription, in each case before any exercise of warrants.The 14,945,913 new common shares (the 'Subscription Shares') to be issued subject to TSX Venture Exchange approval (expected to be received in the coming days), receipt of funds pursuant to the Subscription and admission of the Subscription Shares to trading on the TSX and on AIM ('Admission'), will represent, in aggregate, approximately 7.5 per cent. of the Company's enlarged issued share capital. On receipt of TSX Venture Exchange approval, application will be made to the London Stock Exchange for the Subscription Shares to be admitted to trading on AIM.Related Party TransactionAfrica Oil is a substantial shareholder in Eco, holding more than 10% of the Company's issued share capital, and is therefore a related party as defined by the AIM Rules for Companies. Accordingly, the subscription by Africa Oil (the 'Africa Oil Subscription') is a related party transaction pursuant to Rule 13 of the AIM Rules for Companies. The independent Directors for the p...