Business
Investment by the EBRD
Investment by the EBRD.
About this update from Petro Matad Limited
[{"type":"text","content":"\n RNS Number : 3743E Petro Matad Limited 18 December 2009 \n \n\nPetro Matad Limited (\"Petro Matad\" or the \"Company\")\n\nInvestment in Petro Matad by the European Bank of Reconstruction and Development\n\nPetro Matad, the AIM quoted parent company of a group focused on oil exploration as well as future development and production in Mongolia, is pleased to announce that the Company has conditionally raised US$6 million through a subscription for new ordinary shares of $0.01 per share (the \"New Share(s)\") in the Company by the European Bank of Reconstruction and Development (the \"EBRD\"). The New Shares will be issued at a subscription price of 14 pence per New Share and will rank pari passu with the existing ordinary shares of the Company.\n\nThe New Shares will be issued in two equal tranches of US$3 million, with the number of shares issued calculated based upon the sterling to US dollar exchange rate on the business day before the relevant subscription. The first tranche of New Shares will be issued subject to the fulfilment of the Subscription Agreement's conditions precedent, which are expected to be satisfied in the coming weeks; the second tranche will be issued on the satisfaction of certain further conditions, principally the appointment of a representative of the EBRD to the board of Petro Matad. Upon issue, application will be made for each tranche of New Shares to be admitted to AIM.\n\nCommenting on the share subscription Petro Matad's CEO, Douglas McGay, said:\n\n\"The EBRD are to be congratulated for supporting the Mongolian oil exploration sector through its investment in our Company. The EBRD's support of Petro Matad also demonstrates a meaningful path forward for the fast developing Mongolian private sector. Petrovis LLC, the Company's largest shareholder, should also be applauded for its support in this process and its faith in international business disciplines.\n\n\"Overall, it is tangible evidence of our Company's progress. Following the completion of tranche 2 the EBRD will hold approximately 17.5 per cent. of the Company's issued share capital and the addition of this prestigious investor and its funding of Petro Matad is an end...