EastCoast Energy Announces Oversubscription of Rights Issue
EastCoast Energy reports that its rights issue which closed March 4, 2005 was oversubscribed and that gross proceeds of Cdn$5.5 million have been raised for the Company.
The funds will be used primarily to develop the Company's existing gas assets in Tanzania and to pursue new options for growth. In 2005, the Company will reprocess 400 kilometers of existing seismic and is likely to undertake a minimum $2.1 million seismic program over the Songo Songo field and adjacent exploration acreage.
Under the terms of the rights issue
The subscription price of Cdn$ 2.60 represented a 15% discount to the closing price of the Class B Shares on November 19, 2004.
As at 17:00 hours on 4 March 2005, 2,052,542 Class B Shares had been subscribed for by the rights holders and 6,318,198 Class B Shares had been subscribed for in the Additional Subscription Privilege.
As a result of the rights issue, the Company will issue 2,113,744 Class B Shares including 61,202 Class B Shares under the Additional Subscription Privilege. This will increase the number of Class B Shares in issue to 21,499,988. The number of outstanding Class A Shares remains the same at 1,751,195.
EastCoast Energy Corporation Limited is a TSXV listed company focused on
the production of Tanzanian natural gas and the sale of "Additional Gas" to
markets in East Africa. The Company was spun out from PanOcean Energy
Corporation and began trading on the TSXV as a separate public company on
31 August 2004 under the trading symbols ECE.SV.B and ECE.MV.A. The company is
headquartered in Tortola, British Virgin Islands and maintains its operations
offices in Dar es Salaam, Tanzania.
- EastCoast Energy Secures Rig for Songo Songo Well (Apr 03)
- EastCoast Raises Funds for Tanzania Development (Jan 12)
- EastCoast Energy to Raise Cdn$21.5 Million through a Rights Issue (Sep 11)