The information contained within this
announcement is deemed by the Company to constitute inside
information as stipulated under the Market Abuse Regulations (EU)
No. 596/2014 ('MAR). Upon the publication of this
announcement via a Regulatory Information Service ('RIS'), this
inside information is now considered to be in the public
domain.
Andalas Energy and Power Plc / Index:
AIM / Epic: ADL / Sector: Oil & Gas
23 May 2017
Andalas Energy and
Power Plc (‘Andalas’, or the ‘Company’)
Placing, Lifting
of Suspension and Operations Update
Andalas Energy and Power Plc, the AIM traded Indonesian focused
energy company, is pleased to announce that it has conditionally
raised £600,000 via a placing (‘the Placing’) of 600,000,000
ordinary shares of nil par value (the ‘Placing Shares’) at a price
of 0.1 pence per share (‘the Placing
Price’). Certain Directors are participating in the Placing
by way of a subscription for a total of 168,000,000 Placing Shares.
The Placing Price represents a premium of 29% to the mid-market
price at the time of the suspension of trading in the Company’s
ordinary shares on AIM. Following today’s announcement, the Company
has requested a restoration of trading in the Company’s ordinary
shares, which will recommence trading on AIM from 7.30 a.m. on 23 May
2017.
Andalas CEO, David Whitby, said:
“The Directors’ participation in this
placing at a 29% premium to the last traded share price
demonstrates the team’s conviction that real progress continues to
be made towards establishing Andalas as a leader in the gas to
power space in Indonesia. The opportunity in front of us
remains more compelling than ever and I look forward to updating
the market as we look to generate significant value both for our
new and existing shareholders.”
Details of the Placing and Total
Voting Rights
The Placing is conditional only upon the lifting of the
suspension in trading of the Company’s shares and admission of the
Placing Shares to trading on AIM. The proceeds of the Placing
will be used to provide additional working capital, as Andalas
focuses on advancing its first Wellhead IPP project with Pertamina,
Indonesia’s national energy company. In connection with the
Placing, the Company has also issued 50,000,000 5 year warrants to
third parties in lieu of fees, with an exercise price of
0.1 pence per warrant.
Application has been made to the London Stock Exchange for
admission of the Placing Shares to trading on AIM (‘Admission’) and
it is expected that Admission will occur and that trading in the
Placing Shares will commence at 8.00
am on 24 May 2017. The Placing
Shares will rank pari passu in all respects with the Company's
existing issued ordinary shares. Following Admission of the Placing
Shares, the Company will have an enlarged issued share capital of
3,093,167,975 ordinary shares and there are no shares held in
treasury. This figure may be used by shareholders to determine if
they are required to notify their interest in, or a change to their
interest in, the Company.
Lifting of Suspension
The Company notes the suspension in trading of its ordinary
shares on AIM on 8 May 2017, and its
announcement of 9 May 2017 referring
to recent media speculation concerning a significantly discounted
equity fundraising. The Board can confirm that at the time of the
suspension, it was advised by its broker that it could raise up to
£1.0 million at a price of approximately 0.06 pence per ordinary share.
However, the Board elected to pursue other alternatives and has
now concluded the Placing at the Placing Price, which represents a
significant premium of 29% to the mid-market price at the time of
the suspension of trading in the Company’s ordinary shares on
AIM.
Following today’s announcement, the Company has requested a
restoration of trading in the Company’s ordinary shares, which will
recommence trading on AIM from 7.30
a.m. on 23 May 2017.
Operations Update
Discussions are currently ongoing with potential partners who
have the appropriate technical and financial resources to
co-develop and fund the roll-out of Andalas’ pipeline of projects,
including the first IPP. The Company is encouraged by the
calibre of the interested parties, a number of whom have completed
detailed due diligence on both the Company and its
projects.
Related Party Transaction
Certain of the Directors are participating in the Placing by way
of a subscription for a total of 168,000,000 Placing Shares.
Details of these subscriptions and subsequent beneficial holdings
as a result of the Placing are shown below:
Director |
Ordinary shares
held at today’s date |
Placing
Shares |
Ordinary shares
following Placing |
% of Enlarged
Share Capital |
David Whitby |
77,983,109 |
42,000,000 |
119,893,109 |
3.88% |
Paul Warwick |
13,366,982 |
15,000,000 |
28,366,982 |
0.92% |
Ross Warner |
71,485,738 |
31,000,000 |
102,485,738 |
3.31% |
Simon Gorringe |
71,875,153 |
31,000,000 |
102,875,153 |
3.33% |
Daniel Jorgensen |
48,366,281 |
31,000,000 |
79,366,281 |
2.57% |
Graham Smith(1) |
- |
18,000,000 |
18,000,000 |
0.58% |
- FIM Capital Limited, a company in which Graham Smith is
interested has subscribed for the shares.
|
The subscription by certain of the Directors for Placing Shares
pursuant to the Placing, constitutes a related party transaction
under the AIM Rules for Companies. The independent Director for the
purposes of the Placing, being Robert
Arnott, having consulted with Cantor Fitzgerald Europe (the
Company's nominated adviser), considers that the terms of the
Placing are fair and reasonable in so far as the Company’s existing
shareholders are concerned.
**ENDS**
For further information, please visit www.andalasenergy.co.uk or
contact:
David Whitby |
Andalas Energy and
Power Plc |
Tel: +62
21 2783 2316 |
Sarah Wharry
Craig Francis |
Cantor Fitzgerald
Europe
(Nominated Adviser and Joint Broker) |
Tel: +44 20 7894 7000 |
Jon Belliss
Frank Buhagiar
Susie Geliher |
Beaufort Securities Limited
(Joint Broker)
St Brides Partners Limited |
Tel: +44 20 7382 8415
Tel: +44 20 7236 1177 |