Ascent shares decline on open offer plans

Shares in oil and gas company Ascent Resources fell by nearly a third on Friday after the group announced plans to issue shares through an open offer and convertible loan notes as part of its agreement with Henderson Global Investors.

Shares in oil and gas company Ascent Resources fell by nearly a third on Friday after the group announced plans to issue shares through an open offer and convertible loan notes as part of its agreement with Henderson Global Investors.

The company plans to issue either 500m ordinary shares at 0.5p each or 2.5m convertible loan notes at 100p each on the basis of one offer share for every 2.05 existing ordinary shares, or one convertible loan note for every 410 existing ordinary shares.

The offer follows a previous announcement at the end of December when the company was extremely short of funds and raised vital funds by way of a subscription by Henderson of convertible loan notes of up to £5.5m.

The company was obliged to seek a whitewash (the approval of the waiver of the mandatory offer obligations), which would enable Henderson to convert the loan notes into ordinary shares and own up to 30% of the company.

£2.5m of the £5.5m rescue funding will be made available for shareholders to purchase convertible loan notes on the same terms of Henderson by way of the open offer.

If the convertible loan notes were to be fully converted by Henderson, it would hold around 58.9% of the total voting rights of the company. Ascent has waived Henderson's obligation to make a takeover offer to shareholders.

The group said it believes the fundraising gives the group sufficient capital to continue trading through to the fourth quarter of 2013, and will enable to to make "significant progress" with the Petiovci asset, which caused the funding problems when it failed to come on stream.

NR

Recommended

Best junior stocks and shares ISA platforms
Isas

Best junior stocks and shares ISA platforms

A junior stocks and shares ISA is a great way to save for your child tax-efficiently. But it can be confusing deciding which investment platform to ch…
28 Mar 2023
The top funds to invest in
Funds

The top funds to invest in

As market volatility and recessionary fears continue, here are the most popular funds, stocks and trusts investors are putting their money into
2 Mar 2023
The ten highest dividend yields in the FTSE 100
Income investing

The ten highest dividend yields in the FTSE 100

Rupert Hargreaves takes a look at the companies with the highest dividend yields in the UK’s blue-chip index
27 Feb 2023
The outlook for Shell shares is mixed, despite bumper profits
Energy stocks

The outlook for Shell shares is mixed, despite bumper profits

With profits surging, it looks as if Shell is on a roll, but the company’s growth from here is hard to see as Rupert Hargreaves explains.
6 Feb 2023

Most Popular

Will energy prices go down in 2023?
Personal finance

Will energy prices go down in 2023?

Ofgem’s price cap is now predicted to fall below £2,000, based on average typical use, from July, for the first time since 2022. We have all the detai…
21 Mar 2023
Government plans could see NS&I boost interest rates
Savings

Government plans could see NS&I boost interest rates

The government-backed bank has a new funding target, which could prompt it to boost the rates on its Premium Bonds, ISAs and bonds.
16 Mar 2023
Where will house prices go in 2023?
House prices

Where will house prices go in 2023?

We explore what could happen to house prices in 2023 as the market continues to slow down.
24 Mar 2023