Lochard raises £3.38m through placing

Lochard is set to raise £3.38m after placing new ordinary shares in the company in a two stage arrangement.

In the first stage, 24,958,000 shares were placed to raise £1.747m, and in the second, another 23,327,714 shares will be conditionally placed to raise £1.633m.

The conditional placing is still subject to shareholder approval, set to take place in February.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues 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

Sign up

Some £2.1m of the proceeds from the placing, should it be fully completed, will be used to cover costs in connection with the Athena development, which is close to initial oil revenue, while another £600,000 of the proceeds is intended to be used by the company to settle certain costs associated with the Senergy litigation.

Haydn Gardner, Chief Executive of Lochard said: "We are delighted to have received the support of investors for this oversubscribed placing which further demonstrates the Company's potential and will enable the directors to see Lochard through to becoming an oil producer. We look forward to updating shareholders on progress in the Athena field in due course."

The share price fell 1.47% to 8.38p by 08:50.

NR