Roxi Petroleum saw its shares more than double in value after a Kazakh businessman said he would invest 40m dollars in the firm at a huge premium to the current price.
Shares rocketed to 4.6p when the AIM opened, after the news that investor Kairat Alpamysovich Satylganov had agreed to subscribe for over 355m new shares at about 7p per share.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
However, as Roxi is not currently governed by the UK Takeover Code the deal would not trigger an automatic takeover offer.
Chairman Clive Carver said the investment would take care of the funding needs of Roxi for the foreseeable future and allow the Roxi management team to focus on developing its principal assets.
The first $10m will be paid on January 31st 2013, in exchange for the issue to Satylganov of 88,791,429 new shares.
This would represent around 14.57% of Roxi's current issued ordinary share capital and 12.71% of its enlarged share capital.
The remaining $30m will be called down by the board in exchange for a further 266,374,287 new Roxi shares, to fund work programme commitments at the company's assets.
-
Divorced? Simple rules to stop your ex claiming inheritance on your estateDivorces are back at pre-pandemic levels leaving lawyers urging separated couples to get their affairs watertight to avoid any nasty disputes after death
-
Is now a good time to invest in Europe?European stocks are undervalued, but experts believe that defence and infrastructure spending could see renewed growth
