EnCore Raises Extra Funds for Expansion
EnCore Oil plc announced the placing of 29,166,666 new ordinary shares of 5p each (the "Placing Shares") at a price of 24 pence per share. The Placing will raise approximately £7 million (before expenses).
The Placing has been undertaken to provide additional funds for EnCore's expansion plans and increasing UK work programs.
The Placing Shares will be issued under the existing authorities granted to the Directors The Placing is conditional on the placing agreement, which has been entered into by the Company, Hanson Westhouse LLP and KBC Peel Hunt (the "Placing Agreement"), becoming, or being declared, unconditional in accordance with its terms. The Placing Agreement is conditional, inter alia, on admission of the Placing Shares to trading on AIM occurring by not later than 8.00 a.m. on 21 December 2006 (or such later time and/or date as the Company, Hanson Westhouse LLP and KBC Peel Hunt may agree but in any event not later than 5.30 p.m. on 12 January 2007).
EnCore also announces the appointment of KBC Peel Hunt ("KBC") as joint broker to EnCore with immediate effect. KBC is an integrated securities house focused exclusively on the small and mid-cap sector. KBC consistently ranks as one of the top traders of small to medium-sized companies in the UK market. Hanson Westhouse LLP continues as the Company's nominated adviser and joint broker.
Following the Placing, there will be 234,051,952 ordinary shares of 5p each in issue. Application has been made for admission to AIM of the Placing Shares, together with an additional 179 ordinary shares which were issued as a result of the treatment of roundings in the calculation of the shares issued by the Company as consideration to shareholders in the EnCore group of companies in March 2006. Admission of the shares for which application has been made is expected to take place on 21 December 2006.
Alan Booth, Chief Executive Officer, commented:
"We are very pleased to receive the support of both existing and new
institutional shareholders for our expanding portfolio. We believe the financial
capacity to participate in work programs will be of increasing importance in
attracting and progressing the best opportunities."
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