AIM listed Ithaca Energy Inc., an independent oil & gas company with exploration and development assets in the UK sector of the North Sea, confirms the closing of its previously announced marketed equity financing. Ithaca has issued 50,000,000 common shares at a price of Cdn$1.50 per common share for gross proceeds of Cdn$75,000,000. RBC Capital Markets Inc. and Tristone Capital Inc. acted as co-lead agents for a syndicate that included FirstEnergy Capital Corp., Canaccord Capital Corporation, Fraser Mackenzie Limited and Research Capital Corporation.
Ithaca intends to use the net proceeds of the Offering to fund ongoing Jacky and Athena project development, the completion of the Beatrice and Stella acquisitions and for general working capital purposes. Ithaca anticipates that this financing, combined with the recently announced US$240 million bank financing, will be sufficient to fund Ithaca through to first production on both its Jacky and Athena projects expected at the end of this year and at the end of 2009, respectively.
The 50,000,000 new shares will begin trading on the TSX Venture Exchange Inc. effective today. In addition, application has been made to the London Stock Exchange for these new shares to be admitted to trading on AIM with admission expected to take place on August 13, 2008. Following the issue of these shares, the total number of shares in issue will be 162,261,975.
As part of the new equity issue, Directors of the Ithaca have subscribed for new common shares at a price of Cdn$1.50 as follows:
John Summers (Chairman) 86,700
Lawrie Payne (Chief Executive Officer) 75,000
Frank Wormsbecker (Director) 30,000
Brad Hurtubise (Director) 30,000
In addition, Iain McKendrick, Ithaca’s Chief Operating Officer and Steven Turner, Ithaca’s Chief Financial Officer have subscribed for 40,000 common shares and 20,000 common shares respectively, each at a price of Cdn$1.50 per common share.
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