Elixir Petroleum Releases Results of Entitlement Issue
Elixir Petroleum Limited advised that acceptances under the Company's 1 for 8 entitlement offer, closed on June 27, 2008.
Valid acceptances for 1,950,550 shares were received, which represented a take-up of approximately 9.7%, raising new funds of AUD$526,649 for the Company. The offer was only made to Australia and New Zealand resident shareholders of Elixir.
As previously disclosed by the Company, an agreement pursuant to which the Rights Issue was fully underwritten included various clauses which, if triggered, enabled the underwriter of the Rights Issue to terminate the Agreement at their option without cost to the Company. One of these clauses related to movements in the ASX Small Ordinaries Index, which has fallen by more than the trigger of 10% since the date of the Agreement. As a result, the underwriter has today delivered to the Company written notice of the termination of the underwriting arrangements with respect to the Rights Issue.
As stated in the Rights Issue Offer Document, the Directors reserve the right under these circumstances to place any shortfall at their discretion and have successfully placed approximately 5.9 million shares at $0.27 per share to professional and sophisticated investors, all of whom were sub-underwriters to the Rights Issue, raising a further $1.6 million for the Company.
Allotment of the Rights Issue shares has now occurred and Elixir expects that holding statements will be dispatched to shareholders on or before July 7, 2008. An update on the allotment process for the Shortfall Shares will be provided in due course.
"Following the close of the Rights Issue and partial placement of the shortfall, Elixir has cash on hand of some $12 million, with additional receipts from monthly production of a further US$1.5 million expected in July. The Company's cash reserves and its operating cash flow place it in a strong position to drive forward its business plan and to continue to pursue opportunities within and outside its current portfolio of interests," Said Elixir's Managing Director, Andrew Ross. "Timing of the Rights Issue has proved problematic with turbulent international market conditions further impacted locally by year-end tax considerations during June. We would however like to thank those shareholders and new investors who supported the issue and we look forward to an exciting period of further growth for the Company in the second half of 2008."
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