Gasol has successfully raised £1 million through a placing of shares with its majority shareholder, African Gas Development Corporation Limited ("AfGas").
As announced on January 30, 2009, Gasol had planned to raise £3 million to fund its general business development activities and working capital requirements. Following the £2 million raised by way of placements on February 12 and May 27, 2009, Gasol has entered into an agreement with AfGas on August 19, 2009 whereby:
The placing shares will, when issued, rank pari passu in all respects with the existing ordinary shares of Gasol. An application has been made to AIM for 21,164,021 new ordinary shares to be admitted and it is expected that trading will commence on August 26, 2009. The Company's total and issued share capital following the Placing will be 1,082,725,213 shares. An application for admission for the remaining shares to be issued pursuant to the financing will be made in due course.
The investment from AfGas is considered a related party transaction under the AIM Rules for Companies. The Directors of Gasol having consulted with Jefferies International Limited, the Company's Nominated Adviser, consider the terms of the transaction to be fair and reasonable insofar as its shareholders are concerned.
Soumo Bose, CEO Gasol, commented, "We are pleased to have secured this additional £1 million funding from our principal shareholder -- Afgas; with this, Gasol has completed a £3 million fund raising program to support business development activities in 2009. This continued support from our principal shareholder reflects their confidence in Gasol's progress in the multiple gas monetization projects in Africa".
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