LONDON (Alliance News) – Echo Energy PLC said Friday it has agreed with Bahamas-based investor Pegasus A Fund Ltd SAC the terms of a GBP10.0 million investment in the company.
Echo, formerly called Independent Resources, said Pegasus, and other investors it introduces, will subscribe for approximately 2.47 billion shares at 0.405 pence each, equivalent to its closing price on Thursday.
Shares in Echo were up 15% at 0.466p Friday.
Additionally, Echo will issue 1.23 billion five-year warrants with an exercise price of 0.6075p each, 150% of the placing price.
As part of the arrangement Echo will pay a 10% commission on the placing. The investment is subject to shareholder approval at its meeting on May 22.
Chairman James Parsons said the fundraising is the “last of an initial phase” of institutional investment which will position it for planned acquisitions in Central and South America, as it exits its Italian and Egyptian assets.
By Adam Clark; firstname.lastname@example.org
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