Equity financing raises funds for continued development of asset base
By Devika Patel
Knoxville, Tenn., Oct. 14 - Nighthawk Energy plc said it has secured a three-year equity finance facility with Darwin Strategic Ltd.
The company will raise £25 million to continue the development of its asset base.
Under the facility, the shares will be sold at a 5% discount to an agreed-upon reference price determined during five, 10 or 15 trading days following delivery of a subscription notice.
Darwin also received warrants for 3 million shares, which are each exercisable at 20p for three years. The strike price reflects a 26.98% premium to the Oct. 13 closing share price of 15.75p.
"[This facility] will give us the financial flexibility to continue to develop Jolly Ranch and ultimately to deliver value for shareholders," chief executive Tim Heeley said in a press release. "We considered a number of financing options, and it was clear that this route has the potential to deliver a lower level of dilution to existing shareholders as the company will control the drawdown rate and the discount rate is more favorable than raising equity in the markets at present.
"The board is seeking to balance the interests of existing shareholders with the need, as an E&P company in the early stages of development, for new capital to build value. We will proceed with a firm grip on spend levels and will undertake development in a focused manner. This approach together with the optionality afforded by the [equity finance facility] is intended to enable us to progress in a financially controlled and proactive manner."
Nighthawk Energy is a Bristol, England-based company that produces, explores for and invests in hydrocarbons.
| Issuer: | Nighthawk Energy plc
|
| Issue: | Equity finance facility
|
| Amount: | £25 million
|
| Tenor: | Three years
|
| Price: | 5% discount
|
| Warrants: | For 3 million shares
|
| Warrant expiration: | Three years
|
| Warrant strike price: | 20p
|
| Investor: | Darwin Strategic Ltd.
|
| Agreement date: | Oct. 14
|
| Stock symbol: | London: HAWK
|
| Stock price: | 17.08p at close Oct. 14
|
| Market capitalization: | £51.92 million
|
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