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Fundraising
Fundraising.
About this update from Petro Matad Limited
[{"type":"text","content":"\n \nRNS Number : 8759G Petro Matad Limited 12 June 2013 \n \n\nPetro Matad Limited \n(\"Petro Matad\" or the \"Company\")\nFundraising of US$5 million\n \nPetro Matad is pleased to announce that it has raised $5 million before expenses through the issue of 90,612,540 ordinary shares (the \"New Shares\") of US$0.01 each to its largest shareholder Petrovis Matad Inc. (\"Petrovis\") (the \"Funding\"). The New Shares have been issued to Petrovis at an issue price of 3.56 pence per ordinary share.\n \nThe net proceeds of the Funding, along with the Company's existing cash reserves of approximately US$2.1 million will enable Petro Matad to undertake field operations during the current 2013 field season. As previously notified to the market, Petro Matad is in the process of conducting a farm-out. The Company has had a number of international companies visit the farm-out data room, the data room is now closed and Petro Matad is continuing discussions with interested parties. It is anticipated that the Company will be in a position to make a further statement on the progress with this transaction during the third quarter.\n \nThe support of Petrovis will enable the Company to proceed with 2013 exploration field-work ahead of the completion of a farm-out. Prior to deciding to proceed with the Funding the Company evaluated the funding options available to Petro Matad in what are difficult equity capital market conditions for junior oil exploration companies. Against this backdrop, the Company is fortunate to have Petrovis as a supportive shareholder and the board was delighted to be able to conclude the transaction.\n \nChanges to Notifiable Holdings\nFollowing the issue of the New Shares, Petrovis will hold directly an aggregate of 127,296,802 ordinary shares in the Company representing 45.9 per cent. of the Company's issued share capital. As Dr Oyungerel Janchiv, a director of Petro Matad controls more than 20% of Petrovis, Dr Oyungerel's direct holding, of 6,585,000 ordinary shares in the Company, is for disclosure purposes aggregated with that of Petrovis under the AIM definition of director's family. The aggregated holding of Dr Oyungerel and Petrovis is 133,881,802 ordinary shares representing 48.3 per cent. of the Company's enlarged issued share capital.\nCon...