Ramco Energy Plc announced that the balance of the initial consideration relating to the acquisition of Eagle HC Limited is shortly due to be paid.
The £1 million of consideration outstanding will be satisfied by the issue of 1,912,960 new ordinary shares in Ramco. The New Shares will be issued at 52.275p, being the average closing mid-market price on the day of the release of the Company's final results for the year ended December 31, 2007 and the nine business days thereafter.
A further payment of £0.5 million may become due to the vendors of Eagle if cash flow from the royalty package owned by Eagle commences. That payment can be settled at Ramco's discretion either in cash or by the issue of further shares in Ramco, 30 days after the cash flow commences.
In addition, the Company has issued, conditional on admission, 47,816 new ordinary shares. The shares have been issued in satisfaction of certain invoices totaling £20,800 issued by a consultant to the Company.
Application will be made for the combined total of 1,960,776 new shares to be admitted to trading on AIM and dealings are expected to commence on AIM on July 21, 2008. Following admission of the new shares, the Company will have 41,109,279 ordinary voting shares in issue.
"We are delighted with the Eagle acquisition, particularly the early drilling activity on the royalty acreage and are encouraged by the recent positive news flow and further drilling ongoing on block 21/8," said Ramco's Managing Director, Steven Bertram.
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