Business
Acquisition of Elko and Placing
Acquisition of Elko and Placing.
About this update from Xtract Resources Plc
[{"type":"text","content":"\n \nRNS Number : 0761N Xtract Energy plc 26 August 2011 \n \n\n26 August 2011\n \nAIM: XTR\n \nXTRACT ENERGY PLC\n(\"Xtract\" or the \"Company\")\n \nAcquisition of Elko Energy, Inc.\n \nPlacing of 240,000,000New Ordinary Shares of 0.1p each at a price of 1.25 pence per Ordinary Share raising approximately £3 million (before expenses)\n \n£12.5 million Equity Line Facility\n \nRe-admission of the Company's enlarged share capital to trading on AIM\n \nConvening of General Meeting\n \nResumption of dealings in the Company's existing issued shares\n \nThe Company has today published and sent to Shareholders an Admission Document containing information on the above proposals. The Company has applied for and expects dealings in the Company's existing issued shares to reassume on or around 26 August 2011. (Copies of the Admission Document are available free of charge for inspection during normal business hours on any weekday (Saturdays, Sundays and public holidays excepted) at the registered office of the Company and are also available for download from the Company's website at www.xtractenergy.co.uk).\n \nHighlights\n \n· Xtract has conditionally acquired the remaining share capital of Elko Energy, Inc. for 350,245,343 new Ordinary Shares in Xtract which represents approximately 23.3 per cent. of the Enlarged Share Capital;\n· Xtract has conditionally raised approximately £3 million (before expenses) from institutional investors. The net proceeds will be used to fund the costs associated with the Acquisition and ongoing working capital requirements of the Enlarged Group;\n· Readmission of the Enlarged Share Capital is expected to take place on 13 September 2011. The expected timetable for the Placing and Admission is set out below;\n· Xtract has also announced that it has entered into a conditional agreement with YA Global Master SPV to provide potential future funding of up to £12.5 million as part of an Equity Line Facility; and\n· Following completion of the Elko acquisition, the Company will no longer be an investing company for purposes of the AIM Rules.\n \nOn 21 June 2011, the Company announced that Xtract International ha...