The equity issue comprised of 12 million common shares priced at 44 NOK per share for gross proceeds of US$100 million (NOK 528 million), equal to 48.7% of the existing number of outstanding shares in the company. Settlement date for the new common shares is expected on or about November 14, 2007. A prospectus for the listing of the new shares is being filed with Oslo Bors and the first day of trading for the new shares is expected to be on or about November 15, 2007.
Concurrently, and on the approval of the company's Board of Directors, gross proceeds of US$70 million (NOK 370 million) were raised in convertible bonds carrying an annual coupon of 6% per annum, paid semi-annually and maturing on or about November 20, 2012. The conversion price is NOK 60.5 (US$11.44) per common share of Artumas Group Inc., subject to adjustment. The Company has the right to call the bonds after three years if the closing price of the Artumas-shares on the Oslo Bors has exceeded 150% of the conversion price for at least 20 trading days within a period of 30 consecutive trading days.
Mr. Steve Mason, President and CEO of Artumas Group, stated "We are encouraged by the strong market support expressed for the Artumas business plan, especially in this time of financial market uncertainty. The net proceeds of this offering will be used to significantly advance Artumas' understanding of the crude oil exploration potential in the Rovuma Basin in Mozambique, and to appraise the development potential of the Mnazi Bay and Msimbati Gas fields, as well as the surrounding resource potential in the Mnazi Bay Concession in Tanzania".
The offering was subscribed by Norwegian and International institutional investors.
ABG Sundal Collier Norge ASA acted as joint Lead Manager in the equity issue and Lead Manager in the convertible bond issue. First Securities ASA acted as joint Lead Manager in the equity issue and Co-Manager in the convertible bond issue. DnB NOR Markets acted as Co-Manager of the equity issue.
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