Reabold Resources (RBD) , the AIM listed upstream oil and gas investment company, successfully raised £24 million in a proposed placing on Wednesday, roughly half of its market capitalisation.
The funds will be used to increase its interest in Rathlin Energy and Danube Petroleum, which it believes to be highly accretive investments at “significant discounts” to the value of the discovered resources estimates.
The proceeds will fund further drilling and testing programmes to unlock further potential value, the company said.
2,666,666,666 new Ordinary Shares have been conditionally placed with new and existing institutional investors.
Stifel Nicolaus Europe Limited was the company’s broker and sole bookrunner.
The shares were raised at a price of 0.9p per share, a 12.2% discount, and will be admitted at the beginning of trading on 29 October.
The company is holding a General Meeting with shareholders to authorise the placing on the 28th October.
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